Telegram-based trading bots have emerged as a hot trend among traders. However, blockchain security firms are urging caution, highlighting the potential risks involved in trusting these bots with the custody of private keys.
With many unknowns surrounding how these bots store sensitive information, experts are advising traders to exercise caution and consider alternative storage options.
In an industry where security is paramount, it is crucial to thoroughly evaluate the trustworthiness and reliability of any platform before entrusting it with your valuable assets.
Users can trade on decentralized exchanges (DEXs) by messaging the bots through the Telegram app. The bots are basically autonomous programmes that run through Telegram.
According to CoinGecko, the market value of Telegram bot tokens is getting close to $250 million. Unibot is the largest of the group, and Wagie Bot and Mizar are two additional well-liked bots.
After UNIBOT, a Telegram decentralized exchange (DEX) trading bot, saw its total trading volume increase from $2.8 million to as much as $7 million over the previous week, Telegram bot coins are drawing interest in the crypto investing market.
For many cryptocurrency traders, Telegram has served as a crucial platform in addition to being a simple messaging software. It has served to deliver market insights and news over the years.
Surge in New Telegram Bots: Easier Trading & Security Risks:
Co-founder and COO of CoinGecko Bobby Ong tweeted on the influx of new Telegram bots with integrated wallets that are available, stating that they make airdrop farming easier.
“We are seeing a lot of Telegram bots launching with built-in wallets helping people make degen trades / airdrop farming easier. There are so many bots launching that we created a new Telegram bot category on CoinGecko.”
However, there is some risk involved with using these bots. Users’ savings are exposed to potential fraud or attacks since they must move tokens to a third-party wallet or provide their private keys to link existing wallets.
Ong continued by saying that he wouldn’t be shocked “if one of the bots ended up sniffing / storing the private keys of its users and dragging all its users.”