Honeypot Crypto Scam: 8 Important Facts & How to Avoid It

Jakarta, Pintu News – In the fast-paced world of decentralized finance (DeFi), new forms of scams are constantly emerging. One of the sneakiest is the honeypot crypto scam –a token that can be bought but not sold.

Using smart contracts, this scam locks investors’ funds forever. Understanding how they work, the types and signs can save you from huge losses.

1. What is Honeypot Crypto Scam

A scam crypto honeypot is a token that looks normal-it has liquidity, price movements, and transaction history-but its contract code is deliberately crafted to prevent buyers from reselling. As a result, funds are locked in the contract, and only the scammer’s wallet can make withdrawals.

Also Read: 5 Unique Facts Behind Ethereum (ETH) that You Might Not Know About

2. How Honeypots Work: Three Stages

• Trickery – Scammers launch smart contracts on networks like Ethereum or BNB Smart Chain, then promote them on social media, Telegram, or crypto forums.
• Exploitation – Investors buy tokens, but the sell/transfer function is disabled for all but the scammer’s wallet.
• Withdrawals – Once enough victims are in, the scammer sells his tokens or withdraws liquidity, making the price fall to zero.

3. Types of Crypto Scam Honeypots

• Smart Contract Honeypot – The sell function is blocked for all wallets except those of scammers.
• High Sell Tax Honeypot – Sales are taxed so high, up to 100%, that the victim gets nothing.
• Fake/Pulled Liquidity Honeypot – Liquidity appears real, but is fake or withdrawn suddenly.
• Hardware Wallet Honeypot – A fake cold wallet containing private keys known to the scammer, enabling the theft of funds.
• Honeypot-as-a-Service (HaaS) – A ready-made kit sold on Telegram/dark web to quickly launch a honeypot.

4. Difference between Honeypot and Rug Pull

• Honeypot: Tokens can be bought but not sold; the trap is there from the start.
• Rug Pull: The token starts out normal, but the team pulls liquidity suddenly after investors log in.
  Both are detrimental, but a honeypot is a technical trap, while a rug pull is a sudden withdrawal of funds.

5. Why Honeypots are Difficult to Detect

Even experienced users can be fooled because:

• The contract looks “verified” on Etherscan/BscScan.
• Price and volume activity looks realistic.
• Scammers disguise malicious code or use deceptive naming.

6. Modern Honeypot Example

The latest case involves fake cold wallets being sold on platforms like Douyin (China’s TikTok). The wallets look new and sealed, but the private keys are already in the hands of scammers. Once funds are inserted, billions of dollars are stolen in a matter of hours.

7. How to Detect Crypto Scam Honeypots

• Test selling small before investing big.
• Use a smart contract scanner like Honeypot.is, Token Sniffer, or DexTools.
• Check for real sales transactions from regular wallets.
• Beware of very high sales tax.
• Don’t fall for sudden hype and unrealistic promises.
• Remember, “verified” contracts are not always safe.

8. Tips to Avoid Honeypot Traps

• Always do in-depth research (DYOR).
• Buy hardware wallets directly from authorized manufacturers.
• Ensure token liquidity is locked and verifiable.
• Use a separate wallet to test new projects.

Conclusion

Honeypot crypto scams are a form of fraud that utilizes smart contract technology to lock up investor funds. By understanding the mechanism, recognizing the types, and implementing preventive measures, you can reduce your risk of becoming a victim. In the fast-paced crypto ecosystem, vigilance is the greatest asset.

Also Read: 7 Ethereum (ETH) Developments to Anticipate in 2025

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cointelegraph. The crypto trap that won’t let you sell – and how to avoid it. Accessed August 14, 2025.