A security review shows that Telegram bots are not suitable for long-term asset holding
Are Telegram trading bots valid? Trading robots have become very popular. But it is better not to trust them to keep your property. You will read more about this in this post of Pooyan Music.
Blockchain security firms told Cointelegraph that there are still many unknowns about how Telegram’s various trading bots store private keys.
According to blockchain security companies, Telegram trading bots have turned this messaging platform into a quasi-crypto market. Therefore, they bring significant security risks to users and need further investigation.
Blockchain security firm CertiK told Cointelegraph: Such trading bots have been around for years. But recently, with the rise of digital currency markets and the increase in the price of related bot tokens, they have gained attention.
According to Kevin Gekko, by the time of writing this article, the total market value of Telegram bot tokens is close to 250 million dollars. The largest package is Unibot. Other popular bots include Vejibot and Mizar.
Bots are automated programs that run through Telegram. These bots allow users to trade on decentralized exchanges (DEX) by sending messages to it through the app.
However, CertiK warned that many Telegram bots create crypto wallets for users. Only some of them actually provide the private key.
Not sure if they are stored on the user’s device, accessible by project staff? Or they are backed up through Telegram.
“These platforms offer high volume DEX trading options,” CertiK said. They should be considered very risky and unsuitable for medium to long term storage of assets.
The market value of Unibot token is more than 185 million dollars. It is the largest Telegram bot token by market value.
According to Dawn Analytics, the latest data shows that Unibot users have made a volume of $155 million in more than 23,000 transactions using this bot.
In a post on August 5, blockchain security firm Beosin also highlighted the security risks of using bots. According to the company, their focus on the user’s private wallet keys poses risks.
In addition, additional security risks arise from many bots that do not open source their code or perform security audits. A user also loses control of his capital if his Telegram account is hacked.
Beosin offers its code as open source to make security checks easier and to ensure better storage of user private keys.