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The Art and Science of Memecoin Bots, Tooling, and Infrastructure: A Comprehensive Study
Exploring Crypto Bot Services, and a deep dive into bot tooling and Infrastructure
Disclaimer: The concepts and projects discussed in this paper are highly speculative, and the longevity of these initiatives is uncertain. It is important to exercise caution and conduct thorough research before engaging with these projects.
From SaaS (Staking as a Service) to WaaS (Wallet as a Service), a new wave of services is emerging in the crypto space, focusing on BaaS (Bots as a Service) and the explosive memecoin ecosystem. While some complain about the recent “lack” of innovation in the market, and project teams still recovering from the bear market, there are always visionary projects pushing the boundaries. A few savvy teams are now seizing the opportunity presented by the speculative craze surrounding memecoins in the form of memecoin trading infrastructure and tooling.
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The recent large focus on trading new memecoins could be due to poor market conditions and the possibility of an echo bubble effect within the crypto industry. This echo bubble theory suggests that existing market participants are constantly exchanging funds among themselves, creating a closed loop. Notably, new memecoin projects have experienced exponential growth in market capitalization, some even breaking into the top 100 assets by market cap, generating significant trading volume.
While DEX volume may have decreased, the deployment of hundreds of verified smart contracts on Ethereum alone each day is largely driven by the memecoin phenomenon. A good portion of the verified contracts on mainnet (Ethereum) point to new ERC-20s.
Amidst this trading chaos, a select few projects focus on providing essential tools and infrastructure for traders, resembling the role of Levi Strauss (picks, shovels, and jeans) during the gold rush. The recent surge in tooling infrastructure, although still in its early stages, has already significantly impacted traders. These services encompass automated trading solutions that execute trades on behalf of users, leveraging algorithms and data analysis. They also offer real-time monitoring of on-chain smart contracts to identify potential risks like honeypots or rug pulls, safeguarding traders' interests.
Echo Bubble Fuel
Many traders, including prominent venture capital firms, have expressed their dissatisfaction with the current bear market conditions. However, it is essential to note that the crypto market is cyclical in nature, and periods of downturn are not unprecedented. The combination of increased regulatory scrutiny and the overall bearish sentiment in the market may be contributing to the lack of significant project launches in recent months.
Despite the challenging market conditions, total on-chain transaction volume has remained relatively high. It’s worth considering the possibility of an echo bubble phenomenon taking place.
Who cares about memecoin bots?
Simply put, bots are very profitable. While the concept is not groundbreaking, several emerging protocols are propelling the landscape by offering professional-grade trading tools and generating substantial revenue. For example:
Maestro, a prominent telegram bot has raked in an impressive $5.5 million in revenue for the month of May alone, as reported by Defi Llama.
Maestro takes a 1% tax on every successful buy and sell. These fees are automatically collected and sent to the revenue wallet address:
Generally, once the revenue wallet collects a certain threshold of fees, they are subsequently sent to a smart contract that distributes the ETH to multiple wallets in one transaction. We can assume much of the revenue is disbursed directly to the core teams and treasury wallets. Maestro has collected 50-100 ETH daily within the last few days.
Maestro empowers traders to exchange tokens through their user-friendly telegram interface seamlessly. It provides many tools to enhance trading efficiency, including contract snipers, copy trading, auto buying, etc. The success of Maestro and similar platforms highlights bots' significant role in facilitating seamless and profitable trading experiences for advanced speculative traders.
As you might be able to tell, Maestros pro tools allow traders to save time on steps that might cost a difference between getting in a project at 50k MCAP (market capitalization) versus 1m MCAP. With memecoins, speed is a critical piece of the trade.
Maestro is one of many players in the market offering advanced tooling. There are several other projects in the space working towards similar goals. However, it is essential to note that these projects are still in their early stages and come with a high level of speculation and risk. Market participants must exercise caution.
Lets dive into some other service providers that are competing in this “Bot Wars”.
Unibot is a platform that aims to provide a solution for rapid memecoin and crypto trading on Telegram. Like Maestro, It allows users to quickly execute buy and sell orders directly from their Telegram hot wallet by pasting a contact pair in the Telegram bot channel.
Unibot optimizes speed by utilizing token pool contracts and supports trading on Uniswap v2 and v3. Additionally, the platform offers advanced features such as Multi-wallet swaps, Smart Method Sniper, and Mirror Sniper, allowing users to enhance their trading strategies. Unbot also employs their UNIBOT token, which gives users a discount on trading fees while also providing revenue share in the near future from staking.
You can find the comprehensive analysis of Unibot in this earlier report:
Scarab Tools, also similar to Unibot and Maestro, is another bot that utilizes an online dashboard that provides trading and analysis tools for newly deployed token contracts.
Scarab is a platform specifically designed for trading memecoins, known on scarab as "dung", efficiently and transparently. The platform offers timely notifications for new token listings, contract simulation for enhanced transparency, and real-time statistics on token launches.
Scarab's roadmap includes the development of a sniper bot for quick swaps and a user-friendly position management dashboard.
PintSwap is an OTC (over-the-counter) decentralized exchange (DEX) that introduces a unique approach to trade facilitation in the cryptocurrency market. The platform focuses on low market-cap and low liquidity tokens, aiming to address the issue of high slippage commonly associated with such assets. PintSwap mitigates price impact by conducting OTC transactions and avoids the traditional automated market maker (AMM) pricing mechanics. In contrast to conventional DEXs, PintSwap establishes direct connections between traders using libp2p, a peer-to-peer network stack developed by IPFS.
PintSwaps tooling aims to enhance the efficiency and privacy of over-the-counter (OTC) trading while eliminating significant slippage (price impact). By eliminating the need for visible contracts on the blockchain, PintSwap provides an alternative solution for traders seeking secure and efficient OTC transactions in the crypto space.
0xAuto is a telegram bot designed to simplify the token deployment process on Uniswap V2, PancakeSwap V2, and Goerli's Uniswap V2. Users can deploy a token contract quickly from telegram, eliminating the need for traditional solidity tooling such as Remix to deploy contracts. It offers a range of features, including:
Swift Deployments: Enables quick token deployments
Automated Liquidity Addition and Etherscan Verification: Integrates with Uniswap V2 and PancakeSwap V2 to add liquidity automatically and simplify Etherscan verification.
Sniper Deterrence and Launch Security: Acts as a deterrent against snipers, enhancing the security of token launches.
Multi-Platform Compatibility: Supports Ethereum, Binance Smart Chain, and Goerli, providing flexibility across different blockchain platforms.
Contract Ownership and Customization: Gives contract creators complete ownership and control over token contracts, allowing customization.
Thejungool is a comprehensive platform that offers advanced features to enhance cryptocurrency trading strategies. With its powerful capabilities, thejungool provides:
Advanced Coin Filtration: Discover promising coins at launch with early alerts.
Token Sniping: Execute high-speed token purchases with optimized gas and slippage.
Position Management: Conveniently manage positions through Discord, enabling quick actions.
Watch Pockets: Track influential traders and receive alerts for their buying and selling activities.
TheJungool's automation features enable auto-buying of newly discovered gems, mirroring trades, and real-time social media monitoring of influential figures. Additionally, the tool provides in-depth token analysis, including distribution details and monitoring of whale and sniper wallets.
PepeAnalytics is developing a comprehensive dashboard for analyzing memecoins. Pepe aims to combine social, on-chain, and machine learning to identify new opportunities while providing traders tools to quickly trade based on the platform data. Some notable features include:
Smart Contract Audit Aggregator: Pepe Analytics aggregates existing smart contract audit tools, such as De.Fi and Tokensniffer, to filter out scams and ensure a safe experience when investing at the smart contract level.
Deployer & User Data: The platform recognizes the importance of data related to coin deployment and pair creation. Data includes; funding sources, coin holdings, deployment history, and ownership percentages, as well as data on the investors themselves, top holders, and early participants in the launch.
Social Analytics: Pepe Analytics acknowledges the significance of reputation and social influence in the memecoin space. Users can copy trade other wallets, with a leaderboard system that notifies users when tracked individuals purchase memecoins. This simple social analytics feature complements the core functionalities of the platform.
Bonus: Tokensniper: Pepe Analytics plans to include a token-sniper feature in the dashboard, allowing users to trade tokens based on preset criteria quickly.
blacksmith0x is an upcoming platform that aims to automate buying and selling new listings on Uniswap. With their advanced AI model, Blacksmith0x will automatically purchase new Uniswap listings that meet specific conditions and sell them as they appreciate. The platform distinguishes itself by positioning as a developed AI model rather than just a typical Telegram sniper. Despite being an unreleased product, Blacksmith0x has generated curiosity within the crypto community, although limited information has been disclosed about its features and functionalities.
Other interesting Bot Services
Farmerfrens: An automated airdrop farming Telegram bot
SybilSamurai: NFT-gated airdrop farming vaults.
Meowl: A Discord community-centric bot for contract monitoring and sniping.
In conclusion, the Crypto market is experiencing a surge in the development of tools and services to enhance trading strategies and capitalize on the booming memecoin trend. These tools offer a range of features and functionalities, including advanced coin filtration, token sniping, position management, influencer tracking, and social analytics. By leveraging these tools, traders can gain an edge in the market, save time, and make more informed investment decisions.
Furthermore, the emergence of echo bubbles highlights the speculative underworld in the current market conditions. However, amidst the chaos, projects are stepping up to provide essential infrastructure and tooling for traders, no matter how Degen (risky). These services aim to enhance efficiency, transparency, and security in the memecoin and general ERC-20 landscape, from smart contract aggregators to comprehensive trading dashboards.
Overall, the rise of these pro-trading tools and the ongoing development of new protocols signifies the dynamic nature of the crypto market. As the market continues to evolve, traders and investors must adapt to these advancements to navigate the ever-changing landscape successfully.
Good luck fellow pioneer
Not financial or tax advice. The purpose of this newsletter is purely educational and should not be considered as investment advice, a request to buy or sell any assets, or a suggestion to make any financial decisions. It is not a substitute for tax advice. Please consult with your accountant and conduct your own research.
Disclosure. All posts made by each individual publisher are their own and do not reflect the views or opinions of their respective employers.
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