Original Title: "LD Capital: Are the recent hot "Crypto" bots a flash in the pan or a new investment track?"

Original Source: LD Capital

Since July of this year, the price of UNIBOT has been rapidly rising. According to Coingecko, the price of UNIBOT has increased nearly 100 times from its lowest point of $2.46 in May to its highest point of $236.98 in August, leading a wave of Telegram bots. Currently, the price of UNIBOT has fallen to around $100, and the prices of other assets have also fallen from their highs. The question remains whether bots projects are just a passing fad or if they will evolve into a new field and explode again. This article will summarize by dissecting three representative projects of different types.

One, what is "Crypto" bots

In fact, Telegram bots are not a new concept. Telegram bots are small applications that run within Telegram. Users can interact with bots through flexible interfaces, which can support users to communicate and perform almost any type of task or service. For example, using Telegram bots to replace entire websites, receive payments, create custom tools, create games, and establish social networks.

Source: Official Telegram (*The image shows a food ordering mini-program developed based on Telegram)

Thanks to the open-source framework of Telegram, various bots have gradually emerged in the crypto market since its inception, based on Telegram. For example, news bots that push important messages, bots that track changes in large on-chain addresses or token indicators, and alert bots. These bots used to serve users more in the form of free or subscription-based services.

Currently, in addition to bots based on Telegram, there are also many bot-type dapps based on platforms such as Discord, Twitter, or directly on the web. These bots are characterized by their automation as robots, specifically addressing the needs of the crypyo industry and incorporating the characteristics of the crypto market, such as designing specialized token economics. Therefore, with the rapid development of bots in recent times, the author of this article prefers to refer to them as "crypto" bots. This article divides "crypto" bots into three categories: trading, specialized tools (bots that solve specific problems other than trading), and GPT and AI. We will select a representative project from each category to break down.

二、交易类 bot— Unibot

translates to

2. Trading bot - Unibot

in English.Unibot is a trading tool robot based on Telegram. Users can complete on-chain token trading activities on Uniswap by publishing trading instructions with the robot through Telegram in the form of conversation, such as token trading, limit trading, copy trading, new coin sniping, and private trading. According to official information, the trading speed of this bot is 6 times that of Uniswap. In addition, Unibot has built an attractive profit-sharing mechanism, which has driven the token price to rise by hundreds of times.

This type of project also includes Maestro (*no token yet), Banana Gun, Wagie Bot, Boltbot, NitroBot, 0x Sniper, Dexbot, and more.

1. Core Functionality

(1) Main Menu and Basic Transactions

When using it for the first time, please visit Unibot's Telegram channel and click "start". Unibot will generate three wallets and pop up the main menu. Send at least 0.01 ETH to the wallet address to start trading. The main menu includes all the functions provided by Unibot, which can be accessed by clicking and chatting.

The content you provided is:

Source: unibot

(2) Limit Order Trading

Through chat dialogue, limit order trading can be achieved. After customizing the token contract address, purchase quantity, wallet selection, limit order duration, limit order percentage, and other parameters, deployment can be completed.

Source: Unibot Official

(3) Follow-up trading

You can select professional traders, deploy automatic copy trading, and replicate other people's trades. First, choose the wallet you want to use for copy trading. Second, set the maximum ETH purchase amount for a single copy trade. Third, add or remove addresses by entering one or more ETH addresses separated by commas.

Source: Unibot Official

(4) New Coin Sniper

This feature allows the bot to automatically purchase the new coin for you as soon as it is officially released. First, select the wallet you want to enable Method Sniper on. Second, enter the address of the token you want to snipe. Third, set the maximum amount of ETH that can be used for a single snipe and the highest gas price you are willing to pay. Fourth, set the relevant functions for token operations, such as opening trades, adding liquidity, and starting trades. Fifth, set the maximum amount of tokens you are willing to purchase and the number of blocks you need to wait before purchasing. Sixth, add it to the snipe list and start it up. Unibot also provides an ERC-20 token deployment scanner (*unibotscanner) to quickly find and view new tokens.

Source: Unibot Official

(5) Sell Protection

Enable the fault protection mechanism (*Fail Guard) to avoid losses in gas fees. After enabling the fault protection, the transaction will be simulated before broadcasting it to the network to ensure that it will not cause execution errors. The purpose of Fail Guard is to avoid wasting gas when sending transactions that are expected to fail. This setting will add some delay to your transaction as simulation must be completed before executing the transaction.

(6) Private Transactions

Private node transactions can be enabled, and until the transaction is completed, it cannot be seen on etherscan to avoid "sandwich attacks". Sandwich attacks are a popular front-running technique in DeFi. To form a "sandwich" transaction, the attacker finds a victim transaction that is waiting to be processed and then tries to sandwich the victim with transactions before and after. For example, if the attacker notices that potential victim's pending asset X is being used to trade asset Y, the attacker will buy asset Y before the victim, knowing that the victim's transaction will increase the price of the asset. The attacker plans to buy asset Y at a lower price and let the victim buy at a higher price, and finally sell the asset at a higher price. Private node transactions can prevent such attacks.

Source: Unibot Official

2、Token Economics

This project has undergone a fair launch, with 100% of token supply added to liquidity at launch. The total supply is 1 million, fully circulating and non-dilutive.

Why buy UNIBOT? Because holding UNIBOT can bring a series of benefits, such as trading discounts and earning income from the entire platform and referrals. Due to these benefits, UNIBOT users and investors are motivated to purchase and hold as much UNIBOT as possible. This process will increase the total revenue of the entire platform and raise the coin price, attracting more people to participate.

Source: LD Capital

What is the specific profit mechanism of UNIBOT? There are two main parts of the fees, one is the fee for using the bot product, and the other is the tax on buying and selling tokens. The fee split will give a higher proportion to the token holders, endowing the token with certain intrinsic value and promoting token holding. The referral mechanism, with a 25% split ratio, will also encourage token holders to invite more new users to join the UNIBOT platform.

Source: LD Capital

Unibot was the first to introduce an attractive token economics design, which is a key reason for the project's popularity. Holders of the token can earn profits from UNIBOT's profit-sharing mechanism and price increases. The path to achieving this is to accumulate more tokens and recommend more people to use and trade them. To sustain this spiral, the project team needs to ensure two things: continuous iteration and operation of the product to ensure that the platform is actually being used and new users are entering, otherwise it will become a meme coin; and good market-making and marketing capabilities to make the token trading volume and price attractive.

3、Data Presentation

The total market value of the entire Crypto bots industry is only about $200 million. UNIBOT's MC and FDV (*fully circulated) are $100 million, accounting for 50% of the total market value of the industry, which is a benchmark for the development of the industry. The top ten holding addresses account for about 18% of the total supply, and the chips are very scattered. The price rose from the lowest $2.46 in May to the highest $236.98 in August, nearly 100 times growth, leading a wave of Telegram bots frenzy.

The content you provided is:

Source: coingecko

In the revenue model, the highest daily revenue appeared on July 23rd, which was 337.54 ETH. After the daily revenue fell from its peak, it has recently returned to the income level of 100-200 ETH, with a total accumulated revenue of 7649 ETH. EPS is $42.51, and the recent P/E has fallen from above 3 to 1.85, indicating an increase in investment value. In terms of revenue composition, Taxfees accounts for 79.93%, while Botfees accounts for 20.07%, which is still relatively low and has room for further optimization.

Source: Dune

UNIBOT has a cumulative trading volume of over $290 million, with 428,000 transactions. Its daily trading volume is around $4 million, and it has performed well recently. The number of bot users is 143,500, with 1,808 active users in the past 7 days. There are about 1,000 daily users and 100 new users per day. As a leading project in the bots field, its daily user base is significantly higher than other leading projects in the same field. If there is a significant and stable increase, the coin price may break through its previous high.

Source: Dune

4、Project Characteristics

(1) First launched an attractive profit mechanism, which is the core driving force for the high price of the currency: Unibot is not the earliest to have the function of automatic trading robot, nor does it have the most users. Maestro is the trading bot with the most users before, but Unibot has the most effective token economic design, attracting a large number of users to hold coins and share profits through a Ponzi-like model, and inviting more users to participate. The relationship of interest binding and distribution is the core driving force for quickly pushing up the coin price.

(2) Effectively provides the core functions that need to be solved by bots, to some extent improving the efficiency of using dex: the follow-up trading and new coin sniper functions launched by Unibot do require automated operation to achieve high efficiency. In the past, these functions were mostly completed by professional quantitative traders, but now individuals can also achieve them through bots such as Unibot, which also gives some advantages of using Dex over Cex.

(3) As a leading project, there is further room for improvement in terms of security and reducing user barriers: Market investors generally have concerns about the security of trading bots because private keys are automatically called by the bot. How to prove the security and decentralization to users is the key for such bots to attract a large amount of funds. In addition, many bots are based on high-traffic platforms such as Telegram and Discord, which are expected to easily attract users outside the crypto market. However, the current use of trading bot products is through simple clicks, inputs, and conversations to deploy functions, rather than intuitive front-end interfaces that allow users to quickly understand. It requires clear trading logic and trading experience for users to quickly get started. Currently, bots are icing on the cake for experts rather than reducing barriers for novices.

(4) The income is considerable, and there are obvious advantages in early development, with more opportunities to sustain the business model: Currently, trading bots are beginning to incorporate token economics similar to UNIBOT's revenue mechanism, which can form a rapid upward spiral in coin prices. However, in order to maintain this in the long term, a combination of product capabilities, market-making capabilities, and marketing and operational capabilities is required. Currently, the user base, activity, and botfee ratio of leading projects like UNIBOT are not high, and the data for many other projects is even more tepid. UNIBOT has taken advantage of its early development and high revenue to continue to invest in product and operations, such as the recent release of Unibot X, which provides a more intuitive front-end interface and better user experience.

Three, Subdivision Tool Class - Lootbot

Lootbot is a bot that focuses on executing potential airdrop interactions. It is based on the Telegram platform and serves as a simplified front-end for multiple chains. It deploys and automates on-chain interactions through dialogue. It can save users a lot of time and energy on highly repetitive work and is designed with anti-bot mechanisms to achieve efficient airdrop collection. Currently, it mainly supports the actual interactions of Zksync and Linea, and will enrich the interaction support of other chains such as Layerzero, Scoll, and Base in the future. The interactions it can perform include bridge, swap, NFT mint, etc.

Source: Official Lootbot

Other subdivision tool bots include Collab.Land (*community management), Bridge Bot (*cross-chain), WallyBot (*wallet analysis), NeoBot (*cryptocurrency analysis and tracking), and TokenBot (*community trading tool).

1. Core Functionality

(1) Wallet Deployment and Network Selection

First, you can create up to 10 wallets for airdrop task interaction. Second, after creating the wallet, provide at least 0.1 ETH funds for each wallet on the Ethereum mainnet (*it is recommended to transfer from CEX to avoid witch detection). Third, bridge the funds and bridge your funds from the Ethereum mainnet to start looting on the selected chain.

Source: Official Lootbot

(2) Automated Airdrop

After starting the loot, the task interaction will be automated by the bot, saving users a lot of time and effort on repetitive work. Generally, airdrop tasks are triggered once a week, and lootbot will choose the lowest cost time to execute the airdrop route. The airdrop tasks will be advised by Lootbot's advisors, and the team will select which tasks and routes can be passed. Users can view corresponding wallet interaction data after starting the loot.

Source: Official Lootbot

(3) Integrated Trading

In addition to conducting loot, Lootbot also integrates trading functions, allowing users to trade all ERC-20 tokens directly on Lootbot via Telegram. Unlike airdrop wallets, trading wallets can create up to 3 wallets.

(4) Anti-witch detection

By providing different planning routes to prevent witch attacks, representing real on-chain interactions, and maximizing the chances of qualifying for airdrops, Lootbot will use random strategies, hide on-chain activities, hide fund flows, and automatically mix funds on cex to avoid being identified as a witch.

2、Roadmap

Lootbot is still a relatively early project. It raised funds and conducted research and development in the second quarter of this year, and launched its official version and LOOT token in the third quarter. This year, Lootbot will integrate more chains and protocols, as well as more automated tasks, and focus on recommended marketing.

Source: Official Lootbot

3、Token Economics

LOOT token has a total supply of 10 million, with 50% sold to seed investors, 40% used for liquidity, 5% allocated to the team, and 5% for listing on cex. The team's portion has a TGE ratio of 0, with cliff unlocking after 6 months and linear unlocking after 9 months. The seed portion has a TGE ratio of 33%, with linear unlocking after 1 month.

Source: Official Lootbot

Why use LOOT and hold LOOT? Similar to UNIBOT, holding LOOT can enjoy self-subscription discounts and participate in profit-sharing mechanisms, earning profits from other people's product payments.

Source: LD Capital

The profit mechanism of LOOT? The cost of LOOT comes from two parts, one is the subscription fee used by Lootbot every month, and the other is the transaction tax of LOOT token. 75% of the subscription fee is used to distribute profits to holders, and 2% of the transaction tax will participate in profit distribution after the product has been online for 6 months. Lootbot has introduced the concept of "epochal income", and the profits to be distributed will be summarized into epochal income. 33% will be distributed to holders who only own LOOT, and 66.7% will be distributed to holders who own both LOOT and XLOOT. All epochal income will not be distributed in one epoch (*24 hours), but will be distributed in subsequent epochs. According to the project's idea, this method aims to create a more stable and consistent reward distribution, thereby reducing the impact of fluctuations that may occur when sharing income in a single instance.

Source: LD Capital

LOOT token's current circulation is 8.7 million, accounting for 87% of the total supply. MC is 3.48 million, FD V400 is 0.1 million, and ATL appeared on July 17th at $0.19, while ATH appeared on July 20th at $1.3. The top ten holding addresses account for approximately 36% of the total supply.

The content you provided is:

Source: coingecko

4、Project Characteristics

(1) It also introduces a profit mechanism similar to Unibot, but the source and distribution of profits are different. The coin price driving force is weaker than UNIBOT: similar to Unibot, the income comes from service fees and token transaction taxes, but Unibot's service fee is a deduction from each transaction, and doing transactions will immediately generate income. Lootbot's service fee is a subscription fee. Free version users do not pay subscription fees, but compensate with future airdrop shares, which is uncertain future income. Paid version users pay monthly, which is relatively weaker in terms of time and frequency, and the distribution of income requires multi-epoch linear distribution, which stretches the time dimension of income. It may be weaker than UNIBOT in driving the rapid rise of coin prices, but due to the different types of bot products and operations, Lootbot's distribution method may be more suitable for itself in the long term.

(2) Airdrops require the use of bot tools, and Lootbot has entered the segmented airdrop tool market and become the leading project in this field. There are many trading and Defi bots, but there are very few airdrop bots for personal users. Airdrop tasks are highly mechanized and without the use of bots, personal users need to spend a lot of time and effort to constantly repeat the process, with weak parallel capabilities and highly uncertain future returns. The bot provided for personal users can greatly meet the needs of individual users.

Four, GPT & AI-class ChainGPT

ChainGPT is an advanced artificial intelligence model and tool designed specifically for blockchain technology and encryption-related topics. Its unique features include: blockchain and encryption information, no-code smart contract generator, smart contract auditor, artificial intelligence NFT generation, ChainGPT (*first layer blockchain) virtual machine, etc. In addition, ChainGPT's SDK and API services can be integrated into existing applications.

Source: Chaingpt official website

Other examples of this type include All In (*AI trading), Image Generation AI (*AI-generated NFTs), NexAI (*a series of AI tools), BlackSmith (*AI analysis), and TrackerPepeBot (*AI analysis and contract security testing).

1. Core Functionality

(1) ChainGPT Chatbot: A conversational artificial intelligence assistant that solves blockchain technology and cryptocurrency issues through dialogue, such as no-code smart contract programming, debugging, market analysis, guidance, and trading. It is suitable for individuals, developers, and businesses in the cryptocurrency market. It can be used on multiple platforms such as Telegram, Discord, and Web.

(2) AI News: Provides AI-driven news services, scanning the network every 60 minutes to automatically generate news articles in the blockchain and cryptocurrency fields. The service aims to provide users with the latest and most accurate information on the latest trends and developments in the industry.

(3) Smart Contract Generator and Auditor: ChainGPT simplifies the creation and auditing of smart contracts, making it very user-friendly for those without coding experience. Users can generate contracts by describing the functionality they want, or quickly audit existing contracts by pasting the code into ChainGPT.

(4) NFT generated by artificial intelligence: NFT created using artificial intelligence algorithms based on user prompts, which can be used for various applications such as digital art, in-game items, and digital collectibles. Within 30-60 seconds, anyone can deploy their NFT on the blockchain.

(5) ChainGPT Pad: ChainGPT Pad is a decentralized fundraising platform for incubating crypto projects, which can be used for IDO. Community members holding CGPT tokens can have priority access to IDO, receive airdrops, and enjoy many other benefits such as early access to projects.

(6) ChainGPT (*First Layer Blockchain) Virtual Machine (*Under Development): The ChainGPT virtual machine provides a unique combination of EVM compatibility and on-chain AI, aimed at supporting the development of decentralized artificial intelligence applications on the blockchain.

There are also SDK and API access, blockchain analysis, artificial intelligence trading, and artificial intelligence security extension functions that can be tested and used through permission applications.

2、Development Status and Roadmap

ChainGPT team was established in 2022, composed of experienced developers, blockchain engineers, and artificial intelligence engineers. The CEO and founder of ChainGPT is Ilan Rakhmanov, and the award-winning blockchain and AI engineer Dr. Adnan Tariq leads the development team. The team is engaged in the planning and design of complex Al models and showcases the research results of artificial intelligence to large technology companies and entrepreneurs. In 2022, the team created a chatbot based on chaingpt and published a research paper (*v1.0 white paper). On August 25, 2023, chaingpt announced that it had received $350,000 in funding from Google and support from Google Cloud computing and other resources, which will be used to process and enhance ChainGPT AI models. ChainGPT claims to have received investment from multiple parties, including private investors, venture capital firms, and strategic partners. However, specific information about the investors behind the project has not yet been publicly disclosed.

The content you provided is:

Source: ChainGPT

During the first three quarters of 2023, ChaiGPT released the beta and official versions of the ChainGPT chatbot, the DevAssist browser extension, the Stake & Farming DApp, ChainGPT News, iOS and Android chatbot applications, Telegram/Discord/Slack AI chatbots, and the CGPT token.

The fourth quarter of 2023 will continue to improve the artificial intelligence model and add features. These include the ChainGPT AI trading assistant, ChainGPT iOS and Android app versions with built-in CGPT wallet, and upgrades to the AI NFT generator.

Source: ChainGPT Official

In 2024, the ChainGPT team will begin to focus on building and releasing the ChainGPT testnet and mainnet, creating a layer one and layer two network suitable for AI smart contracts and models.

Source: ChainGPT Official

3、Token Economics

The total supply of CGPT tokens is 10 billion, with distribution ratios as follows: private sale a-11.4%; private sale b-4.5%; public-9%; liquidity-20%; team-9%; development-4%; consulting-3%; dao-9%; reserve-9.85%; marketing-9%; kol-6.25%; liquidity mining-5%. The current real-time supply is 129,024,329 tokens, with a token release ratio of 12.9% (*including LP).

CGPT token has four main use cases.

(1) Consumed in specific functions: Accessing the ChainGPT AI model, an advanced artificial intelligence model designed specifically for the cryptocurrency and blockchain industry, which can provide users with assistance in contract writing, concept interpretation, answering questions, market analysis, and other functions.

(2) Destruction Mechanism: CGPT has a burning mechanism that automatically consumes half of the fees or income generated by ChainGPT tools and utilities. This reduces the overall supply of CGPT and increases its scarcity. Currently, 1,294,904 CGPT tokens have been burned (*approximately 0.12%).

(3) Pledge: Pledge allows token holders to lock their tokens and contribute to the security and stability of the network in order to receive rewards or certain benefits within the ecosystem. For ChainGPT, pledging allows token holders to access artificial intelligence models and prioritize access to their services. They can also further obtain governance rights of Dao and upgrade their membership level in ChainGPT Pad (*bronze, silver, gold, diamond) to obtain greater participation rights in Launchpad.

(4) Liquidity provision: Token holders earn rewards by providing liquidity to the ecosystem. For ChainGPT, token holders can provide liquidity to the CGPT token on decentralized exchanges and earn rewards in CGPT tokens.

The current CGPT and MC are 6.52 million US dollars, and FDV is 50.54 million US dollars. The currency price gradually fell to a new low level after a surge in issuance in April this year. ATH appeared on April 29th at 0.297 US dollars, and ATL appeared on September 3rd at 0.0492 US dollars.

4、Project Characteristics

(1) ChainGPT combines bot and AI technology to provide many efficient tools. For example, with the Chaingpt chatbot, users can specifically solve blockchain technology and cryptocurrency issues. With the smart contract generator and auditor, users can generate the required smart contracts and conduct audits without requiring too much programming knowledge. With the NFT AI generator, users can generate and deploy their NFTs on the blockchain within 30-60 seconds.

(2) ChainGPT has built a comprehensive product matrix, which, if successfully implemented, could form a closed loop and build competitive barriers: ChainGPT has developed many AI tools applicable to Crypto and can form a closed loop. For example, developers can use ChainGPT to develop and publish on ChainGPT Pad. Users can participate in new projects by holding CGPT, use ChainGPT for smart transactions with relevant tokens, browse news, and consult GPT for blockchain and encryption issues. ChainGPT is also developing a separate chain (Layer 1 and Layer 2). If all of this is successfully implemented, it will have a strong competitive barrier, but the time and difficulty of implementation are also significant challenges.

Five, Summary and Reflection

Through the analysis of various cutting-edge projects of Crypto bots, it is found that Crypto bots effectively solve some pain points of cryptocurrency users, such as copy trading, sniper trading for new coins, automated airdrop interaction, AI-generated smart contracts or NFTs. Without relevant bots, individual users will find it difficult to improve their technical advantages. With the rise and popularity of this round of unibot, investors and users have also paid attention to various bots. In one or two months, new projects have emerged rapidly, each with its own highlights. Under real demand, Crypto bots will evolve into a brand new track.

Currently, the total market value of the entire industry is relatively small, with a total of about 200 million US dollars, which has a lot of room for growth compared to other mature industries. The long-term development factors require: product iteration to reduce barriers and provide better user experience, better asset security and decentralization, and more user accumulation.

In short, projects that solve user pain points will definitely have long-term development. Currently, the token economics of bots have also opened up new ideas for funding and price empowerment. Paying attention to new products and iterations will have the opportunity to capture a new round of market growth.

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