Author: Binance Research / Source: https://research.binance.com/en/analysis/telegram-bots-explo
Translation: Huohuo/Blockchain in VernacularKey Takeaways:
1) Telegram bots have gained a lot of attention in recent weeks as token prices have skyrocketed and reports from media and key opinion leaders have driven interest in the space.
2) By providing users with a range of features such as trading, sniping, airdrop farming, etc., Telegram Bot enables crypto users to easily perform crypto activities through their mobile devices in a user-friendly manner.
3) The cumulative lifetime transaction volume of transactions facilitated by Telegram robots has exceeded 190 million US dollars, and the daily transaction volume on July 23, 2023 hit a record high of 10 million US dollars.
4) The revenue model for the Telegram bot consists of charging users transaction fees and, in some cases, collecting a purchase or sale "tax" on transactions involving the bot's native token . Telegram bots have grossed over $28.7 million
5) It is too early to measure organic demand, as much of the current activity is driven by soaring token prices. Nonetheless, we may see continued development, at least in the near future, as projects compete for market share.
6) Users should do their own due diligence before interacting with any Telegram bot. This report does not constitute an endorsement or recommendation of Telegram Bot by Binance Research.
1. Overview
With token prices soaring and a lot of discussion on Crypto Twitter (or rather, "X"), Telegram bots have become a new narrative in the crypto community. By allowing users to perform a range of functions as easily as sending a message on Telegram, these bots introduce a user-friendly alternative to existing DeFi front-end applications.
Robot Workflow
◆ Step 1: The user enters a command in the channel of the telegram bot.
◆ Step 2: Generate a main menu where the user can choose to create a new wallet or connect an existing wallet.
◆ Step 3: Once the wallet is set up, the user can fund the wallet with the address provided.
◆ Step 4: Prompt the user with an additional menu where the user can perform different types of transactions.
Ecosystem and Features
Common features include :
◆ Trading: Buy and sell Tokens directly through Telegram.
◆ Sniping: Tokens are automatically purchased when Tokens are listed.
◆ Imitate transactions: imitate transactions of other traders.
◆ Airdrop Farming: Automates a series of actions to help increase chances of receiving an airdrop.
◆ Other: Bots can provide additional functionality, such as analytics or wallet trackers.
2. Overview of the development of telegram robots
With the proliferation of Telegram bots, crypto users can access alternative mediums through their mobile devices to perform crypto activities. This may appeal to unskilled DeFi users, and existing front-ends are often more cumbersome and may require more steps.
Additionally, supporters of Telegram bots argue that by increasing accessibility and ease of use, they could potentially bring new users to crypto. Today, Telegram reportedly exceeds 800 million monthly active users, representing a huge market for crypto’s potential expansion.
Interest in Telegram bots has also surged in recent weeks due to token price spikes and coverage from media and key opinion leaders. As of this writing, the total market capitalization of bot-related tokens exceeds $150 million, and many tokens have experienced several-fold growth in a short period of time(1).
A key contributor is the UNIBOT token, which represents over 77% of the market share. There has also been a surge in interest, represented by Google search interest, using Unibot as a proxy in the field.
1) Telegram bot adoption and activity
User metrics for Telegram bots hit an all-time high in July, with more than 6,000 daily unique users. As one of the pioneers in this field, Maestro has around 2-3K daily active users. Unibot is catching up and has narrowed the gap considerably in recent weeks; in July, daily active users more than quadrupled from about 400 to 17,000 in a two-week period.
Overall, the adoption of Telegram bots has increased as users test the functionality offered by Telegram bots. On July 23, 2023, the robot's daily trading volume hit an all-time high of more than $10 million. Cumulative lifetime transaction volume also exceeds $190 million. Note that actual numbers may be higher, as not all data are readily available.
Token trading activity has the power to influence community engagement, especially for new narratives. The rise of Token price and trading volume attracts attention and discussion, and vice versa. While still high, we have noticed that the slowdown in bots’ native token volumes in recent days (Figure 9) coincides with a general decline in bot users and bot volumes, as shown in Figures 6 and 8, respectively .
In any case, given the nasty nature of the industry and the volatility associated with new stories, it's too early to tell whether recent data points to a trend reversal, or merely represents a blip before activity rebounds again.
2) Agreement income
Notably, Telegram bots have effectively turned adoption of their respective protocols into revenue. This is usually accomplished by charging users a fee for executing trades through the bot. Another slightly controversial fee model adopted by some is to charge a buy and sell "tax" on every buy and sell transaction involving the bot's native token.
It is worth emphasizing that not all income is related to the actual transaction income collected by the bot. For example, Unibot collected a total of 43,000 ETH (approximately $8 million), about 86% of which was related to purchase or sales taxes, not trade revenue (2).
Maestro currently leads in terms of cumulative revenue because it is the first mover in the space (launching in July 2022). In addition, its relatively high number of daily active users is about 2-3K, which enables Maestro to obtain continuous transaction revenue. Trading revenue comes from the 1% transaction fee that Maestro charges on each successful buy and sell order through the app.
3. Prospects and risks
The rise of Telegram bots has introduced another medium for crypto trading. Telegram bots offer a smoother user experience and greater accessibility compared to DeFi front-ends, potentially carving out a niche in the crypto ecosystem for a specific user base.
At this stage, it is too early to gauge organic demand, as most of the current activity is underpinned by surging token prices. Still, the field has certainly heated up, and we may see further developments as robots vie for market share.
1) Examples of current and potential developments
◆ Expansion to other media : Many bots have expanded beyond Telegram to other media such as Discord. This allows them to reach more users and provides another venue to execute transactions.
◆ Increasing product suite : While some bots may choose to specialize in a single domain (such as sniping), we suspect more bots will try to develop new features to cover more areas and position themselves as one-stop shops. Users simply go to a bot to execute countless different trades.
◆ Multi-chain expansion : We have observed that Bot is not just a multi-chain expansion of the Ethereum blockchain. This enables them to provide users with the ability to transact across different blockchains.
◆ Price Competition : The fees of most Telegram bots are not currently the cheapest. When the industry matures and numerous incumbents compete with minimal product differentiation, lower fees may be used as a way to attract users.
2) risk
It is important to realize that interacting with Telegram bots is not without risk. Given the dangers of this space, it is absolutely imperative that users learn about bots and conduct thorough due diligence before interacting with them. Examples of risks include :
◆ Asset Security : Bots have different settings, but usually allow users to create a dedicated wallet or connect an existing wallet. In both cases, bots have access to private keys, which can be a risk. As the saying goes, "Not your key, not your code."
◆ Smart contract risks : Considering how the robot operates, interaction with smart contracts is inevitable. While not foolproof, a well-vetted project will allow developers to identify and fix critical issues.
Given the above examples of risks, robots may not be for everyone. Nonetheless, users can mitigate risk by (1) trading in smaller sizes; (2) keeping minimal funds on the wallet; and (3) creating a new wallet rather than using your main wallet to communicate with the bot interact. These risk reduction techniques are examples only and should not be taken as financial advice. Users who interact with bots should do their own research and due diligence.
Four. Summary
Interest and usage of Telegram bots has exploded in recent weeks. By providing users with a relatively seamless way to execute transactions, bots have the potential to carve out a niche of their own in the crypto ecosystem. In addition to increasing adoption, Telegram bots are also effective at generating revenue, leading to concerns that they provide an actual yield to token holders.
Still, it’s important to understand that not all bots are the same; some bots may generate the majority of their income from sales or purchase taxes on their native token transactions, rather than bot transaction revenue. Therefore, the continued revenue growth of these bots depends on the continued strong trading activity of their native tokens.
At this stage, it’s too early to tell if the Telegram bot will be able to maintain user interest, but the project’s ongoing development is a welcome move. We will keep a close eye on future developments in this area, especially in terms of mitigating some of the risks associated with bots and innovating new and beneficial features for users.
