Last week's CryptoConnect Dialogues was a fascinating journey with our special guests – NekoZ, Vasco and Dami. We explored Web3 social trading and Telegram bots, delving into the current market landscape, covering existing projects, their functionalities, and user experiences, while also addressing challenges, opportunities, and the road ahead.
Curious about the highlights? No worries, we've got you covered.
Considerations in SocialFi: During the discussion, participants explored both prospects and reservations regarding existing social trading platforms like Friend Tech. They pointed out concerns such as the perceived artificiality within these platforms and the impact of influential entities manipulating the system through monetization. A comparison was drawn with the natural growth observed on platforms like Twitter, raising apprehensions about the potential deterrent effect of commercialization on smaller participants. The conversation emphasized the existing challenges in the current business models of these platforms and suggested a move toward a more organic and less influencer-centric approach.
Web3 Copy Trading Dynamics: Participants delved into the advantages and challenges associated with copy trading in the Web3 space. While recognizing the profit potential of emulating successful traders, concerns surfaced regarding liquidity challenges and scalability, particularly with lower-volume pairs. Nonetheless, the significance of these platforms was emphasized, highlighting blockchain technology's potential to establish a transparent system for copy trading.
Evolution of User Behavior and Telegram Bots: Participants acknowledged the user-friendly nature, accessibility, and swift trade execution capabilities of Telegram bots. The observed shift in user behavior from computer-based to mobile app-based trading was discussed, attributing this trend to the ease of use and accessibility provided by platforms like Telegram bots. Further, the importance of a positive user experience was underscored as a key factor for the widespread adoption of trading bots. Creating an interface that mirrors the simplicity of centralized exchanges, minimizing technical complexities, and providing a familiar experience were considered essential for attracting a broader user base.
Security Concerns and Self-Custody: Participants acknowledged security risks associated with certain Telegram bots that lack full decentralization. The discussion highlighted the suggestion to explore Hardware Security Modules (HSM) for trading bots, underscoring the critical importance of security, especially in private key management. Additionally, the mention of VIP 4337 account abstraction for Ethereum network account extraction indicated a specific focus on enhancing security measures. The conversation also emphasized the need for users to practice self-custody to protect against unauthorized access and potential hacks.
Integration of Social Trading and Bots: The potential game-changing integration of social trading and bots that aims to reduce barriers of entry for traders has also been discussed. Participants emphasized the idea that users, by seamlessly receiving signals and executing trades within a Telegram bot, could significantly improve accessibility and user experience. Despite recognizing the benefits of a smoother user experience, the discussion also delved into challenges developers must address when combining social trading and bot features. These challenges include ensuring accurate signal execution and enhancing asset security. Overall, speakers reached a consensus that while the space holds substantial potential, it is still in its early stages, necessitating multiple experimentation cycles to develop the optimal product.
If you're keen on a more in-depth look at the entire episode, you can check it out right here.
What's Next in CryptoConnect Dialogues? ✨
Mark your calendars for our next episode on December 6, 2023, at 2 PM UTC! This time, we're delving into the intriguing realms of trading psychology and market psychology in crypto space. Reserve your spot by RSVPing now. Join us for yet another engaging CryptoConnect Dialogues session!