TG BOT Rising Upstarts in Blockchain Marketing and Grassroots Counterattack, Security Issues Await Resolution

TG BOT Blockchain Marketing Rising Upstarts, Grassroots Counterattack, Security Issues Await Resolution.

Author: defioasis, Wu Shuo

TG Trading Bot (TG Bot) has emerged in the recent sluggish market environment. Coingecko has launched the TG Bot section, and related TG Bot concept tokens have risen by tens or even hundreds of times in just a few weeks. In the past quarter, the UNIBOT Token has increased by at least 50 times. Although TG Bot concept tokens have become popular recently, in fact, whether it is Telegram, Discord, or WeChat, these types of plugin-like bots have been around for a long time.

Robot User Experience

As a trading-oriented TG Bot, it will not deviate from users’ trading habits and some characteristics of DEX to develop and provide a more comfortable user experience in trading. Currently, TG Bot mainly serves Meme players who pursue high returns and high risks. For players of this kind, the trading bot will adapt different functions around the before, during, and after trading.

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The first is to obtain first-hand information channels for Memecoins before trading. The channels can be divided into two points: token level and Smart Money operations. TG Bot will monitor the birth of a new coin from multiple dimensions, such as pool size, celebrity releases, low tax/high tax, LP lock-up time, and old wallet purchase quantity, etc. TG Bot will also monitor wallets with high win rates that have the characteristics of betting small to win big, and provide a one-click follow function.

After obtaining first-hand information, if choosing to trade within TG Bot, there are two options: importing the wallet or depositing into the wallet generated by TG Bot, usually the latter. During the trading process, there are three pain points: transaction speed, slippage, and MEV attacks. To address these points, TG Bot will provide some functions, such as sniper functions for newly issued tokens, limit orders, custom slippage, and using TG Bot’s private node trading to achieve faster response speed and avoid sandwich attacks.

After completing the trade, some TG Bots may also provide profit/loss calculation and analysis for user addresses.

Project Revenue Models

TG Bot’s revenue models can be roughly divided into four types.

① Membership fee system, which means that a certain fee needs to be paid before using the bot, with prices around 0.1 ETH per month and 1 ETH per year. This model is relatively biased towards private domains and communities, and is more suitable for KOLs who can attract loyal users, or even entrepreneurial projects born from a meme group.

② Free trial, but with transaction fees deducted, represented by Unibot. Unibot charges 1% fee for each transaction, which is a secondary charge on top of Uniswap transaction fees. However, Unibot will distribute 40% of the fees to its token holders. Therefore, as a user and a token holder, a relatively positive relationship can be formed. Currently, Unibot has a daily active user base of about 1,000-1,500, but the fees captured are not inferior to some major protocols.

③ Combining transaction taxes and membership models, Maestro represents. Maestro’s overall functionality is similar to Unibot. It also charges a 1% fee per transaction, just like Unibot. However, Maestro has not yet released tokens, and all fees are recorded as protocol revenue. In addition, a $200 monthly VIP community service has been launched, where members can access carefully selected Smart Money addresses or wealth codes.

④ Holding a certain amount of tokens allows free use of trading bots.

Factors for Explosive Growth

The recent popularity of TG Bot may be a successful story of on-chain marketing and grassroots counterattack. Whenever a Memecoin becomes popular, crypto enthusiasts are eager to find those Smart Money wallets, to find those wallet addresses that have multiplied their earnings by hundreds or even thousands of times, and then analyze the historical behavior of those wallet addresses to imitate and follow. TG Bot undoubtedly meets this demand. In addition, TG itself is an essential social app for crypto, integrating trading and socializing, making the marketing and dissemination of on-chain addresses very convenient.

On the other hand, the reason why low-net-worth players do not pursue mainstream coins but are keen on Memecoins is to accumulate wealth in a short period of time, especially stimulated by so many stories of getting rich quick. The mechanisms of successful Memecoins mostly create a fair environment and convey the idea of anti-VC. The same goes for TG Bot, which is down-to-earth and based on the commonly used social app Telegram. In addition, exposure on data websites such as Coingecko and DeFiLlama has captured more fees than projects valued at billions of dollars by VCs. Users of TG Bot also take pride in this and see TG Bot Token as another form of Meme, embodying the idea of grassroots counterattack. Of course, it is undeniable that the TG Bot project team is deliberately or unintentionally catering to this narrative.

Opportunities and Risks

Currently, the TG Bot race is still in its very early stages, with the entire race being worth tens of millions of yuan, and it is still primarily focused on trading functions. In the future, it may develop the robots into a more diversified and even aggregated platform. Additionally, to achieve long-term development, users must be encouraged to use TG for chatting and trading, and convert TG users into TG Bot users.

However, at the same time, the risks of TG Bot are also clear. The moat is relatively weak, and the functionality is relatively homogeneous. To maintain long-term competitiveness, the project team needs to continuously iterate and update its features. Furthermore, new entrants to TG Bot are more likely to start with trading fees and engage in price wars. Another risk is security, including wallet security and token security. In TG Bot, imported wallets or generated wallets cannot guarantee that private keys will not be leaked, which limits the scale of funds the race can accommodate. TG Bot cannot confirm the security of newly created token contracts and token models. For example, the previous PNDX, launched by LianGuaiuly, the founder of the NFT market Not Larva Labs, had vulnerabilities in its contract and its model required minting on the official website, but TG Bot cannot detect these two points, resulting in users who purchased on TG Bot becoming liquidity for others.

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