Crypto security firm Certik has issued a warning that over 40% of Telegram Bot tokens may be exit scams. In a tweet on Wednesday, Certik highlighted the concerning trend, noting that these tokens have experienced a significant surge in popularity since July 20, with gains exceeding 1000%.
Certik attributes the rise in Telegram bot tokens’ popularity to the initial success of UNIBOT, a powerful Telegram bot designed to enhance trading efficiency and risk management. UNIBOT’s native token witnessed a remarkable 1,300% price increase on the day of its listing.
The cryptocurrency market features numerous Telegram bots, each offering specific products or services. Many of these projects have introduced their own cryptocurrency tokens, which serve various purposes based on the specific project’s goals.
For instance, the Telegram bot token IMGNAI allows users to generate unique images using artificial intelligence. Token holders can enjoy watermark-free, high-quality 4k resolution images, unlike free users.
Beware of the hype train! 🚆🛑
Our analysis shows that over 40% of Telegram Bot tokens could be exit scams…
Unveiling Telegram Bot Tokens in our new Byte Size Blockchain 👇 pic.twitter.com/Rf4VNqhWeJ
— CertiK (@CertiK) September 13, 2023
However, not all Telegram bot tokens have meaningful use cases. Some tokens are highly speculative and attract individuals looking to profit from them.
CoinMarketCap currently tracks 67 different Telegram bot tokens, with a combined market capitalization exceeding $96.7 million.
In a separate development, Telegram and the TON Foundation announced the launch of TON Space, a self-custodial wallet, during Singapore’s Token2049 crypto conference. This wallet, created by The Open Platform (TOP), will be available starting November. It is designed to cater to Telegram’s global user base without necessitating wallet registration, except in certain jurisdictions like the United States, where regulatory scrutiny has led to geofencing of many crypto apps.
The launch of TON Space follows the introduction of a feature on the Telegram TON Blockchain that allows users to transfer Tether (USDT). Additionally, the team overseeing The Open Network (TON) blockchain has transitioned into a Swiss non-profit organization.
Certik’s warning underscores the need for caution and due diligence when dealing with Telegram bot tokens in the cryptocurrency market.