Introduction to Honeypot Scams

Honeypot scams are tokens that users can buy but cannot sell, trapping funds and making the tokens effectively worthless. Scammers use different tactics to manipulate charts and entice victims. Let’s dive in!

Blacklist Mechanism

This type of honeypot adds buyers to a blacklist, preventing them from selling the tokens after purchase. If your wallet is on the list, you'll be unable to trade your tokens.

Balance Change Mechanism

The balance change technique alters a user’s token balance within the smart contract, often reducing it to a tiny amount or zero. The balance appears unchanged on blockchain explorers, but users are effectively unable to sell.

Minimum Sell Amount Mechanism

In this method, scammers set an unachievable minimum sell amount that is higher than the user’s current balance or available supply, making it impossible to sell the tokens.

Losses from Honeypot Scam

Some scammers create thousands of honeypot contracts using automated deployment, allowing them to quickly proliferate these fraudulent tokens and trick more investors.

Identifying Red Flags

Be wary of tokens with an "all green" chart showing only buys and no sells. Also avoid tokens aggressively promoted in trading channels or social media.