Security firm says don’t trust Telegram crypto trading bots

Certik raised concerns over the surging adoption of crypto trading bots in the Telegram ecosystem.

Telegram is a popular messaging & media sharing platform that probably doesn’t require an introduction as the platform is popular in almost every country because of its huge number of innovative features. For a few years, a dedicated crypto team has been providing crypto trading services via Telegram independently. This year, devs introduced huge numbers of new features in the Telegram crypto trading services.

Recently popular crypto security firm Certik investigated the Crypto bot services, gaining huge popularity in the Telegram ecosystem.

The Certik platform shared some important information about these telegram crypto bot services with the Binance-owned crypto news media Cointelegraph.

The security firm noted that crypto trading bots have been in existence for several years but recently these bots grabbed huge popularity among telegram users and the trading volume under these bots is in millions of dollars.

According to Certik, we can’t say whether the funds in the hands of these telegram crypto bot services are safe or not because it is not known how they store the private key of the users. In short, we can’t keep our funds with these trading bots for the long term.

“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,” CertiK said.

Because of the surging popularity of crypto trading bot services, a popular crypto price tracking platform Coingecko listed a special category for such bot services. In July of this year, the Coingecko team reported that Unibot, Loot, and Bolt were top in the crypto sector.

Just a week ago, the Binance crypto exchange also talked about Telegram crypto trade services through a dedicated blog post and stated that Telegram required more development work to emerge as a big competitor in the crypto sector.

Crypto trading bots

Crypto trading bots are basically of several types. Nearly 4-5 years ago, bot services emerged in the crypto sector as an automatic intelligent crypto trader tool.

But in the present time, some developers are creating bots for special media platforms to allow crypto traders to trade crypto assets directly via sending messages to the bot.