The Success Story Behind the Explosion of TG Bots A Successful Tale of On-Chain Marketing and Grassroots Counterattack

TG Bots On-Chain Marketing and Grassroots Counterattack Success Story

Author: defioasis

Editor: Colin Wu

In the recent cold market environment, the TG Trading Bot (TG Bot) has emerged as a rising force. Coingecko has launched the TG Bot section, and related TG Bot concept tokens have increased by dozens or even hundreds of times in just a few weeks. As of August 4th, according to Coingecko data, the total market value of the TG Bot track is 186 million USD, with Unibot, the leader, occupying about 75% of the market share. 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 existed for a long time.

Trading Bot User Experience

As a trading tool, TG Bot will not deviate from users’ trading habits and some characteristics of DEX, but will provide a more comfortable user experience based on DEX. Currently, TG Bot mainly serves meme players who pursue high returns and high risks. For such players, trading bots will adapt different functions around the before, during, and after aspects of trading.

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Firstly, obtaining first-hand information about Memecoins before trading. The channels can be divided into two aspects. One is at the token level, where TG Bot will monitor the birth of a new coin from multiple dimensions, such as pool size, celebrity announcements, low/high taxes, LP lock-up time, and the quantity of purchases by old wallets, etc. The other aspect is the operation of Smart Money, where TG Bot will monitor wallets with a high success rate that have the characteristic of betting small to win big, and provide a one-click copy-trading function.

After obtaining first-hand information, if choosing to trade within TG Bot, there are two options: importing a 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. TG Bot will provide some functions to address these points, such as sniper functions for tokens that have just been issued, offering limit orders, customizing slippage, and using TG Bot’s private node for faster response speed and to avoid sandwich attacks.

After the trade is completed, some TG Bots will provide profit/loss calculations for user addresses.

Project Profit Model

TG Bot’s profit model 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 more suitable for private domains and communities, and is more suitable for KOLs who can attract loyal users, or even entrepreneurial projects born in a meme group.

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

③ In combination with transaction taxes and membership systems, the representative is Maestro. Maestro’s overall functionality is similar to Unibot, as it also charges a 1% fee per transaction like Unibot. However, Maestro has not yet released tokens, and all fees are recorded as protocol revenue. In addition, Maestro has launched a $200 per month VIP community service, where members can access carefully selected Smart Money addresses or wealth passwords.

④ Holding a certain amount of tokens allows for free use of the trading bot.

Factors for its popularity

The recent popularity of TG Bot may be attributed to a successful on-chain marketing and grassroots uprising story. Whenever a Memecoin becomes popular, crypto enthusiasts are eager to find those Smart Money wallets, analyze the historical behavior of those wallets, and imitate their investment strategies. TG Bot undoubtedly meets this demand. In addition, Telegram itself is an essential social app for the crypto community, integrating trading and social interactions, which makes the marketing and dissemination of on-chain addresses very convenient.

On the other hand, the reason why low-net-worth players pursue Memecoins instead of mainstream coins is to accumulate wealth in a short period of time, especially when stimulated by so many stories of overnight fortunes. The mechanisms behind successful Memecoins mostly create a fair environment and convey the anti-VC concept. TG Bot is similar in that it is down-to-earth, based on the widely used social app Telegram. Moreover, exposure on data websites such as Coingecko and DeFiLlama has captured more fees than projects with valuations of billions of dollars from VCs. Users of TG Bot also take pride in this and consider TG Bot Token as another form of meme, embodying the idea of grassroots uprising. Of course, it cannot be denied that the TG Bot project also consciously or unconsciously caters to this narrative.

Opportunities and Risks

Currently, the TG Bot track is still in its very early stages, with the entire track being worth billions of yuan, and it still primarily focuses on trading functions. In the future, it may develop the robot into a more diversified and even aggregated service. In addition, to achieve long-term development, users must develop a habit of using TG for both chatting and trading, converting TG users into TG Bot users.

However, at the same time, the risks of TG Bot are also evident. 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 functions. New entrants to TG Bot are more likely to start a “price war” by competing on transaction fees. Another risk is security, including wallet security and token security. Importing wallets or generating wallets in TG Bot cannot guarantee that private keys will not be leaked, which limits the amount of funds that can be accommodated in this track. TG Bot cannot confirm the security of newly created token contracts or token models. For example, PNDX, launched by LianGuaiuly, the founder of the NFT marketplace Not Larva Labs, had vulnerabilities in its contract, and its model required minting on the official website. However, TG Bot cannot detect these two points, resulting in users who purchased the token on TG Bot losing their liquidity to others.

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