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Honeypot Scams: What It Means And How They Trap Crypto Traders
By Will Izuchukwu, July 28, 2025
Honeypot scams are a dirty trick in the crypto world that can leave even experienced traders stuck with worthless tokens. On the surface, these tokens behave like any other, but behind the scenes, they’re designed to trap investors.
These scams are based on smart contracts that are rigged to block withdrawals or sales once you’ve invested your money. The contract is written to mislead, and the price may even rise quickly, making it look like a promising investment. However, when you try to cash out, you’ll realize that the token is worthless and your funds are locked in.
But how do these honeypot scams work? And what can you do to detect them before it’s too late?
What Does a Honeypot Look Like?
At first glance, honeypot tokens seem like any other. They have a website, often with a Telegram group, and the token launches smoothly. However, the contract is designed to limit or block your ability to sell or withdraw your funds once you’ve invested. The contract can be coded to reject swap attempts, disable transfers, or even prevent sales altogether.
Early buyers are given a false sense of security as they’re allowed to buy without any issues. But when they try to cash out, the trap is sprung, and they realize that their tokens are worthless.
How to Detect Honeypot Scams
Detecting honeypot scams requires careful analysis and due diligence. Here are some red flags to watch out for:
1. Check the smart contract: Use tools like Etherscan, BscScan, or Solscan to inspect the contract. Look for any of these warning signs:
* Transfer restrictions that prevent sales
* Mint function active that allows devs to flood the market with tokens
* Liquidity unlocked, which allows devs to pull the entire pool
* Changeable trading rules that allow fees or permissions to be altered post-launch
2. Analyze trading behavior: Be wary of contracts where only a few wallets can sell. This could mean the contract whitelists specific addresses while blocking others.
3. Use honeypot detection tools: There are several websites and bots available that can scan a contract for risks and flag potential honeypots. Some popular options include https://honeypot.is/bsc, https://honeypot.is/base, and https://honeypot.is/ethereum, as well as the Telegram bot @ttfbot.
4. Watch out for dust tokens: If you receive a random token in your wallet that you didn’t buy yourself, don’t interact with it. This is called a dust token, and if you try to trade or move it, scammers may drain your wallet by prompting you to approve a malicious contract.
5. Be cautious of low-cap tokens: Scammers often target smaller-cap tokens as they are more likely to fly under the radar. If something looks too smooth, especially in low-cap tokens, dig deeper before investing.
Conclusion
Honeypot scams rely on deception and manipulation to trap crypto traders. They’re designed to look attractive at first but turn out to be worthless once you try to sell. By being vigilant and doing your due diligence, you can avoid falling prey to these traps.
Remember, the real gains in crypto come from knowing what not to touch. Always research thoroughly before investing in any cryptocurrency or service.
Source: nulltx.com
