Although bots offer convenient features and help speed up transactions on decentralized cryptocurrency exchanges, many experts believe that their security may be the biggest weakness in the cryptocurrency space.
Currently, bots integrated with the messaging app Telegram, such as Unibot, Swipe, wagiebot, and Bolt, are attracting a large number of cryptocurrency users. According to data from Dune Analytics, since May 2023, over 63,000 cryptocurrency users have conducted transactions with a total value of nearly $186 million using these bots.
These bots appeal to users with their simplicity and user-friendliness – making transactions as easy as sending messages. Based on predefined rules, users can identify trading orders, explain them, and quickly execute transactions on decentralized exchanges linked to the bots.
Telegram bots are designed to make cryptocurrency trading more user-friendly by simplifying complex procedures related to setting up cryptocurrency wallets and authorizing necessary permissions for smart contracts behind decentralized exchanges processing asset transactions.
However, blockchain security company BlockSec has expressed concerns about the increasing trend of Telegram bots. Co-founder Yajin Zhou emphasizes the potential risks associated with token transfers to third-party wallets created or revealed by these applications. He points out that despite their high speed and ease of use, these bots often face security risks.