Written by: defioasis

Editor: Colin Wu

TG trading robot (TG Bot) has emerged in the recent cold market environment. Coingecko launched the TG Bot section, and the related TG Bot concept token has increased by dozens or even hundreds of times in just a few weeks. As of August 4, Coingecko data showed that the current total market value of the TG Bot track is 186 million US dollars, of which the leading Unibot occupies about 75% of the market share; in the past quarter, UNIBOT Token has increased by at least 50 times. Although the TG Bot concept token has become popular recently, in fact, whether it is Telegram, Discord, or even WeChat, this type of plug-in-like robot has actually existed for a long time.

Trading robot experience

As a trading tool, TG Bot will not be separated from the trading habits of users and some characteristics of DEX. It will provide a more comfortable user experience in trading based on DEX. At present, TG Bot mainly serves Meme players who pursue high returns and high risks. For such players, the trading robot will adapt different functions around the beginning, middle and end of the transaction.

The first is to obtain information channels for first-hand Memecoins before trading. The channels can be divided into two points. The first is the token level. TG Bot will monitor the birth of a new coin from multiple dimensions, such as pool size, celebrity releases, low tax/high tax, LP lock-up time, and the number of purchases by old wallets. The second is the operation of Smart Money. TG Bot will monitor the high-winning wallets with the characteristics of small-scale winning and big-scale winning in the entire network, and provide a one-click copy function.

After obtaining first-hand information, if you choose to trade in TG Bot, one is to import the wallet, and the other is to recharge the wallet generated by TG Bot, usually the latter. In the process of trading, there are three trading pain points: one is the transaction speed, the second is the transaction slippage, and the third is the MEV attack. In response to these points, TG Bot will provide some functions, such as the sniper function for the newly issued tokens, providing limit orders, custom slippage, and using TG Bot's private node transactions to obtain faster response speeds and avoid sandwich arbitrage attacks.

After the transaction is completed, some TG Bots will also provide profit/loss calculation analysis of the user's address.

Project profit model

TG Bot's profit models can be roughly divided into four types.

① Membership fee system, that is, you need to pay a certain fee before using the robot, the price is about 0.1 ETH per month and 1 ETH per year. This model is relatively biased towards private domains and communities, and is more suitable for KOLs who can attract loyal users, or even entrepreneurial projects born from group members in a certain Meme group.

② Free trial, but transaction tax is collected, represented by Unibot. Unibot charges 1% of each transaction, which is a secondary charge on Uniswap transaction fees. But Unibot will distribute 40% of the fees to its token holders. Therefore, as a user and as a token holder, a relatively benign relationship can be formed. Currently, Unibot's daily active users are about 1,000-1,500, but the fees captured are not inferior to some large protocols.

③ Combining transaction tax and membership model, the representative is Maestro. Maestro is similar to Unibot in overall function, and also charges 1% of each transaction like Unibot, but it has not yet issued tokens, and all fees are recorded as protocol income. In addition, on this basis, a VIP community service of $200 per month is also launched. After entering the VIP community, you can get some carefully selected Smart Money addresses or wealth passwords.

④ Holding a certain number of tokens allows you to use the trading robot for free.

Hot Factors

The recent popularity of TG Bot may be a success of on-chain marketing and a grassroots counterattack story. Whenever a Memecoin becomes popular, crypto CTs will be very keen to find those Smart Money wallets, to find those wallet addresses that make hundreds or thousands of times more money with small bets, and then analyze the historical behavior of those wallet addresses to imitate and follow orders. TG Bot undoubtedly greatly meets this demand. In addition, Telegram itself is a necessary social software for Crypto, which integrates transactions and social interaction, making the marketing and dissemination of on-chain addresses very convenient.

On the other hand, the fundamental reason why low-net-worth players do not pursue mainstream coins but are keen on Memecoins is to accumulate wealth in a short period of time, especially under the stimulation of so many stories of getting rich quickly. The mechanism of successful Memecoins is mostly to create a fair environment and convey the concept of anti-VC. The TG Bot for the purpose of attacking the local dog is similar. It is very down-to-earth and based on the commonly used social software Telegram; coupled with the exposure of TG Bot by data websites such as Coingecko and DeFiLlama, the capture fee exceeds those projects with a valuation of billions of dollars by VC. Players who use it will also be proud of it and will regard TG Bot Token as another form of Meme, which contains the idea of ​​grassroots counterattack. Of course, it is undeniable that the TG Bot project party is also intentionally or unintentionally catering to such a narrative.

Opportunities and risks

At present, the TG Bot track is still in a very early stage, with a scale of only 100 million yuan, and it is still mainly based on trading functions. In the future, robots may be developed from trading functions to more diversified functions, or even aggregated. In addition, if you want to develop in the long run, you must let users develop the habit of using TG to chat while using TG to trade, and convert TG users into TG Bot users.

But at the same time, the risks of TG Bot are also very clear. The moat is relatively weak and the functions are relatively homogeneous. To maintain long-term competitiveness, the project party needs to do some continuous function iteration and update. The new entrant TG Bot is more likely to start with transaction fees and fight a "price war". The second is security issues, including wallet security and token security. Importing a wallet or generating a wallet in TG Bot cannot guarantee that the private key will not be leaked, which restricts the scale of funds that can be accommodated in this track; TG Bot cannot confirm the security of the newly born token contract and the token model, just like the previous PNDX, which was launched by Pauly, the founder of the NFT market Not Larva Labs, but its contract has loopholes, and its model needs to be cast on the official website, but TG Bot cannot detect these two points, resulting in users who purchase in TG Bot becoming the exit liquidity of others.