Blockchain security experts claim Telegram trading bots can endanger by not providing access to crucial private keys.
Trading bots on Telegram are gaining traction in the crypto trading space. However, as their popularity swells, security experts are sounding the alarm on potential vulnerabilities.
Telegram's trading bots, while not a new phenomenon, have seen a recent upswing parallel to the crypto market's expansion.
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The recent analysis indicates that the collective market cap of these bot tokens is now close to $250 million. While Unibot dominates this realm, Wagie Bot and Mizar also leave their marks.
These automated tools enable users to trade on decentralized exchanges (DEX) using the simple act of messaging on Telegram. But this convenience might come with hidden costs.
A blockchain security entity CertiK highlights that many of these bots, while creating user crypto wallets, occasionally don't grant users access to the critical private key. Stressing on the gravity of the situation, CertiK remarked:
While 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.
It is worth noting that Unibot's token market cap stands impressively at over $185 million. Dune Analytics further indicates that users have executed trades worth $155 million via Unibot, spanning over 230,000 individual transactions.
In another spotlight on the issue, Beosin, a blockchain security specialist, aired their concerns on August 5th. They pinpointed the inherent risk in these bots' centralized approach, which might endanger a user's private wallet keys.
According to Beosin, many bots aren't making their code open-source, nor are they undergoing meticulous security checks. There's also the looming threat of users losing access to their funds if attackers breach their Telegram accounts.
The appeal of Telegram's trading bots is undeniably strong. However, as they embed into the crypto trading world, the emphasis on fortified security and clarity becomes paramount. Users and bot creators must navigate this space with caution and foresight.
