Telegram trading bots are currently the talk of the town. By transforming the messaging platform into an almost crypto marketplace, they have ignited a spark in the crypto spheres. However, as with any innovation, there lie considerable security concerns, as pointed out by blockchain security firms such as CertiK.
The interest in Telegram trading bots has sharply spiked in recent times as various bot tokens, including Unibot, have surged in price alongside the booming crypto markets. Unibot, among other popular bots like Wagie Bot and Mizar, now stands with a market cap surpassing $185 million. But with the increase in popularity, questions surface about their security measures.
These trading bots work by creating crypto wallets for users who use their service. Some bots provide the private key to these wallets, and others do not. The storage of these private keys raises eyebrows. The lack of clarity on whether these keys are accessible by project employees, stored on the user device, or backed up through Telegram makes these platforms high-risk for medium to long-term storage of assets. This ambiguity strengthens the opinion that these bot tokens are suited for high-volume decentralized exchange (DEX) trading.
Scrutiny doesn’t end there; security risks extend further due to the centralization of these bots. Concerns are increased as many bots do not open-source their code or undertake any security audits. Therefore, if a user’s Telegram account gets hacked, they run the risk of losing control over their funds.
Moreover, blockchain security firm Beosin echoes these fears and urges projects to open-source their code to facilitate security reviews. Implementing better storage measures for user private keys is another security measure that they recommended.
While the advantages that Telegram trading bots bring to the table are not negligible, attention must be drawn to the potential concerns around their application. With security being paramount in the world of crypto trading, further investigation and amelioration of security measures are necessary.
Source: Cointelegraph
