Telegram trading bots are hot, but don’t trust them for custody — Security firms

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Telegram buying and selling bots, which have been turning the messaging platform right into a quasi-crypto market, pose important safety dangers for customers and require additional scrutiny, in accordance with blockchain safety corporations.

Whereas such buying and selling bots have existed for years, they’ve just lately gained consideration as crypto markets acquire and related bot tokens have gained in worth, blockchain safety agency CertiK informed Cointelegraph.

As of the time of writing, the mixed market capitalization of Telegram bot tokens is nearing $250 million, according to CoinGecko. The most important of the pack is Unibot; different well-liked bots embody Wagie Bot and Mizar.

The bots are automated applications that run through Telegram, permitting customers to make trades on decentralized exchanges (DEXs) by sending messages to it via the app.

CertiK, nevertheless, warned that many Telegram bots create crypto wallets for users, with just some really offering the personal key.

It’s unclear in the event that they’re saved with accessibility by venture workers, on the person system, or backed up via Telegram.

“Whereas these platforms supply high-volume DEX buying and selling choices, they need to be thought of extraordinarily high-risk and unsuitable for medium to long-term storage of belongings,” CertiK mentioned.

The Unibot token market capitalization is over $185 million — the biggest Telegram bot token by market cap.

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Newest knowledge reveals Unibot users have traded a quantity of $155 million throughout over 230,000 trades utilizing the bot, according to Dune Analytics.

The each day buying and selling quantity of Unibot customers since late Could reveals a spike round late July. Supply: Dune

In an Aug. 5 post, blockchain safety agency Beosin additionally highlighted the safety dangers of utilizing the bots, claiming their centralization posed a danger to a person’s personal pockets keys.

It added additional safety dangers come from most of the bots not open-sourcing their code or enterprise safety audits and a person may additionally lose management of their funds if their Telegram account is hacked.

Beosin advisable tasks open-source their code to make safety critiques simpler and guarantee higher storage of person personal keys.

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