Rising Use of Telegram Trading Bots Indicates Greater Security Risk

A surge in crypto traders embracing Telegram-integrated bots like Unibot, Swipe, WagieBot, and Bolt sparks curiosity.

Over $186 million in trades have been executed since May, drawing attention from experts and security firms.

These bots, such as Unibot, Swipe, WagieBot, and Bolt, have seen a rising influx of users conducting trades totaling close to $186 million since May, according to Dune Analytics data.

However, amid the flourishing activity, concerns are growing among experts, primarily focused on how these bots handle user assets.

Trading with these bots is as effortless as sending a message. With predefined rules, they can identify trade commands, interpret them, and execute trades on decentralized exchanges, streamlining the process for traders eager to buy or sell coins quickly.

Despite the ease of use, many experts consider the security of these bots to be among the weakest in the crypto sector.

The bots create wallets for users, issuing private keys for trading, but this practice challenges the principle of maintaining secure self-custody of funds.

While the bots offer speed and ease of use, they come at the cost of security, leaving users vulnerable to potential hacks or data breaches.

As users aren't generating their private keys, the security of their assets is not always assured, raising the risk of potential misuse.

Dishonest bot developers could exploit users, similar to past market frenzies, resulting in exit scams that defrauded countless investors.

Experts further worry about the lack of code security audits for these bots, indicating possible risks to user assets.

The absence of such audits raises red flags and raises questions about the transparency of the project's mechanics.

Moreover, the missing end-to-end encryption on Telegram adds to the concerns.

While Telegram chats are encrypted, they lack end-to-end encryption, potentially exposing users' financial actions to risk.

Any confidential information relayed to the bots, be it transaction specifics or commands, stands the risk of potential exposure.