{"id":21026,"date":"2023-08-11T00:19:25","date_gmt":"2023-08-11T00:19:25","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/telegram-trading-bots-are-hot-but-dont-trust-them-for-custody-security-firms\/"},"modified":"2023-08-11T00:19:26","modified_gmt":"2023-08-11T00:19:26","slug":"telegram-trading-bots-are-hot-but-dont-trust-them-for-custody-security-firms","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/telegram-trading-bots-are-hot-but-dont-trust-them-for-custody-security-firms\/","title":{"rendered":"Telegram trading bots are hot, but don\u2019t trust them for custody \u2014 Security firms"},"content":{"rendered":"
\n

Telegram trading bots, which have been turning the messaging platform into a quasi-crypto marketplace, pose significant security risks for users and require further scrutiny, according to blockchain security firms.<\/p>\n

While such trading bots have existed for years, they’ve recently gained attention as crypto markets gain and associated bot tokens have gained in price,\u00a0blockchain security firm CertiK told Cointelegraph.<\/p>\n

As of the time of writing, the combined market capitalization of Telegram bot tokens is nearing $250 million,\u00a0according to CoinGecko. The largest of the pack is Unibot; other popular bots include Wagie Bot and Mizar.<\/p>\n

The bots are automated programs that run through Telegram, allowing users to make trades on decentralized exchanges (DEXs) by sending messages to it through the app.<\/p>\n

\n

Telegram bot tokens will be the next crypto meta in the coming 1-2 months. Agree or disagree? https:\/\/t.co\/LewLnlivSm<\/p>\n

\u2014 Bobby Ong (@bobbyong) July 19, 2023<\/a><\/p><\/blockquote>\n

CertiK, however, warned that many Telegram bots create crypto wallets for users, with only some actually providing the private key.<\/p>\n

It\u2019s unclear if they\u2019re stored with accessibility by project employees, on the user device, or backed up through Telegram.<\/p>\n

\u201cWhile these platforms offer high-volume DEX trading options, they should be considered extremely high-risk and unsuitable for medium to long-term storage of assets,\u201d CertiK said.<\/p>\n

The Unibot token market capitalization is over $185 million \u2014 the largest Telegram bot token by market cap.<\/p>\n

Related: <\/em><\/strong>Curve-Vyper exploit: The whole story so far<\/em><\/strong><\/p>\n

Latest data shows\u00a0Unibot users have traded a volume of $155 million across over 230,000 trades using the bot,\u00a0according to Dune Analytics. <\/p>\n

The daily trading volume of Unibot users since late May shows a spike around late July. Source: Dune<\/em><\/figcaption><\/figure>\n

In an Aug. 5 post, blockchain security firm Beosin also highlighted the security risks of using the bots, claiming their centralization posed a risk to a user\u2019s private wallet keys.<\/p>\n

It added further security risks come from many of the bots not open-sourcing their code or undertaking security audits and a user could also lose control of their funds if their Telegram account is hacked.<\/p>\n

Beosin recommended projects open-source their code to make security reviews easier and ensure better storage of user private keys.<\/p>\n

Hall of Flame: <\/em><\/strong>Wolf Of All Streets worries about a world where Bitcoin hits $1M<\/em><\/strong><\/p>\n<\/div>\n