A honeypot scam in crypto is a type of malicious smart contract or token trap where
You can buy the token, but
- You can’t sell it (or can only sell under specific, unfavorable conditions).
- It’s like a jar of honey — looks sweet, but once you stick your hand in, you can’t pull it back out. 🐝🍯
🔍 How it works
1. Scammer deploys a token with hidden restrictions in the smart contract.
2. They market it heavily — hyped promises, fake influencers, community FOMO.
3. People buy in, thinking they’ll sell later for profit.
4. When victims try to sell:
- The transaction fails (sell function blocked).
- Or the fees are so high (e.g., 99%) that they get almost nothing back.
5. The scammer eventually sells their own unlocked tokens into the trapped liquidity, draining all value.
⚠️ Common contract tricks
- Hardcoded “only owner can sell” restrictions.
- Max sell amount set to 0 for non-owner wallets.
- Extremely high sell taxes.
- Disabling the transferFrom or swapExactTokensForETH functions for most users.
🛡 How to avoid honeypots
- Use a honeypot checker (e.g., Honeypot.is, TokenSniffer).
- Test with a small sell right after buying.
- Read the contract for suspicious modifiers like onlyOwner or hidden require statements.
- Avoid new tokens with no audits and massive hype but no utility.