These bots need high liquidity in order to have an impact on the market making bot, or at least there are a large number of users sufficient to move the price of a currency. In any case, what they offer is help to scam beginners by coordinating a sacrificial attack and dumping, so it is closer to scam, and I do not know if there is a way legally this can be done.
You are somewhat right in that sense because those bots can manipulate the market value of the crypto-currencies that have very low marketcap. In fact, in reality every exchange is using those kind of bots to pump and dump some useless shit-coins that don't have any good use case other then getting pumped and dumped to loot the money out of the pockets of the greedy fellows.
The bots can't be trusted because they can also make the users to lose the money if an exchange decides to dump or pump the price out of the bot's expectations. The bots are programmed by a programmer and they work in the same fashion by watching the different parameters of the markets and they coins they will be pumping, and in that case there might be anti-bots from the exchanges that could cause huge dumps in value of the crypto-currency that the bot is trying to pump.
In such case, the bot will end up losing capital value of the users and anyone who puts money into that bots ecosystem will be at a loss without any question. That's why I always recommend users to learn trading themselves rather than relying on a piece of software that could go wrong anytime without any warning.
