Honeypot scams in crypto block selling while showing fake activity to trap investors into losing their funds.
- Honeypots let you buy tokens but prevent selling through hidden smart contract rules.
- Even verified contracts can be traps with hidden restrictions or high sell taxes.
- Always test transactions, scan contracts, and avoid hype to stay safe.
How Honeypot Scams Work
A honeypot scam tricks users into buying a fake token. On the outside, everything looks normal—price moves, trading history exists, and liquidity seems available. But after purchasing, the user finds selling blocked. The smart contract allows only the scammer’s wallet to sell or withdraw.
These scams hide inside the token’s code. Common tricks include disabling transfer functions or setting sell taxes as high as 100%. Victims watch their funds get locked, with no clear warning.
Types of Honeypot Crypto Scams
There are different honeypot scams in crypto:
- Smart contract honeypots: The contract lets you buy, but silently blocks selling.
- High sell tax tokens: Selling may work, but with a fee of up to 100%, leaving the user with nothing.
- Fake liquidity pools: These look real, but users can’t sell due to removed or fake liquidity.
- Hardware wallet honeypots: Fake cold wallets sold online come preloaded with known private keys. When funds are added, they are stolen quickly.
Honeypot vs Rug Pull
Both are crypto scams but differ. In a honeypot, the trap is coded in from the start. Buyers can’t exit at all. In a rug pull, users are free to sell, but developers remove liquidity, crashing the price. Honeypots hide the lock, while rug pulls wait to strike after building trust.
How to Spot a Honeypot
To avoid honeypot traps:
- Try selling a small amount first. If it fails, avoid investing more.
- Use tools like Honeypot.is or Token Sniffer to check contracts.
- Look for sell activity. A token with only buys may be a honeypot.
- Check for high sell taxes or hidden fees.
- Ignore fake hype or promises. Fast growth with little history is a warning.
Source: cointelegraph.com
