The automated trading protocol Unibot announces rewards for the Solana ecosystem

Latest news for the Solana cryptographic ecosystem: the team of the Telegram trading bot Unibot has announced the launch of the new crypto UNISOL that will be distributed among the holders of the UNIBOT coin and the users of the protocol, and that will accumulate earnings in SOL.

This is an incentive similar to the one developed a few months ago by competitor Banana Gun, which periodically donates a portion of traders’ rewards to holders of the BANANA crypto.

This move, however, has sparked disapproval from the Unibot community, as the launch of the UNISOL resource could create a context for a depreciation of UNIBOT.

Let’s see all the details below.

Token holders of UNIBOT and users of the Solana platform will receive rewards in the new crypto UNISOL

The telegram trading bot Unibot, which uses an automated trading mechanism that allows sniping of new coins on Uniswap, announced on January 26th that it will launch a reward for Solana ecosystem users in the form of the new crypto UNISOL.

This resource, not yet launched in the crypto markets, will be intended for users of the Unibot protocol and holders of the UNIBOT crypto.

In addition to the destruction of UNISOL, there will also be a second incentive based on revenue sharding: the project team explained on X that the revenue generated by Unibot on Solana will be divided 50/50 into two pools.

The first one belongs to UNIBOT holders on Ethereum, who will need to connect a Solana wallet to receive rewards, while the second one concerns UNISOL holders.

In practice, holders of UNIBOT and UNISOL crypto will accumulate SOL earnings as part of traders’ profit and loss (PNL), thus incentivizing coin holding, very similar to what was done by Banana Gun bot on the Ethereum blockchain.

Here is the announcement published on X introducing UNISOL to the public:

We remind you that Unibot represents an innovative protocol that allows users’ wallets to be connected to the decentralized exchange Uniswap, allowing for automated trading and betting on new tokens using the popular messaging platform Telegram.

This revolutionary trading technique was initially launched on Ethereum by the project team, and then expanded to Solana with great success.

The on-chain data provided by Dune Analytics shows that over 20,000 Unibot users have generated more than 130 million dollars in total volume since January 2023.

In total, the trading bot has collected about 11,700 ETH in fees, equivalent to over 26.5 million dollars, with a portion of this loot directly donated to UNIBOT crypto holders.

The platform seems to be growing rapidly: compared to the 2000 users at the end of June 2023, we now have over 41,000, with average daily volumes of 7.3 million dollars.

Only on Sunday, the platform generated commissions of $74,000 on Solana and Ethereum with a combined volume of $7.5 million.

Despite the growing metrics, we observe that the numbers are significantly lower than those recorded by the industry-leading DEX Uniswap, which daily records volumes of 900 million dollars.

The choice of the Unibot team generates discontent among the community: many users switch to the “Banana” platform

The initiative of the Unibot team to create a second cryptographic resource for their project has not been well received by the community who complained that the UNISOL crypto could attract new buyers to Solana more than UNIBOT is doing on Ethereum.

In essence, UNIBOT traders and token holders argue that UNISOL’s incentive campaign will lead to a constant dilution over time for the old currency, given that the profits of the telegram bot traders will only be sent to holders of the new crypto.

The announcement from the platform team, dated January 26th, has indeed led to a mass sell-off, which concluded after two days resulting in a 34.5% depreciation for the crypto asset.

The UNIBOT chart then recovered with a green candle of +43% after the project developers explained on X that the launch of UNISOL could also increase the value of the first coin over time.

At the time of writing the article, UNIBOT prices are still slightly lower than those recorded before the announcement on January 26th.

While the price action of the currency seems to be hanging between optimism and distrust, the Unibot community complains about X, threatening to move to the competitor Banana Gun bot.

In particular, the user “KaminocCrypto” highlighted how, in his opinion, the choice of the telegram bot team can be classified as one of the top 3 worst choices ever observed for a cryptographic project.

The UNIBOT/UNISOL dualism and the division of rewards could lead to a sell-off of the two assets to accommodate a wave of purchases on the BANANA crypto.

The user is literally: “bullish on the yellow fruit“

Other members of the community have also expressed their disapproval for this convoluted move, which seems to only want to copy (in a bad way, moreover) what Banana did months ago.

Many investors are already moving by selling their shares of UNIBOT and buying those of BANANA.

In the last 24 hours, the Banana bot’s router has accumulated approximately 14 ETH in fees on the Ethereum blockchain, which are as always distributed in part to the holders of the same crypto.