Topic · Scams and safety
What is a honeypot crypto scam?
- Quick fact 1
Anyone can create a token, and scam tokens often copy the names of real projects.
- Quick fact 2
Token contracts are code; their rules apply exactly as written.
- Quick fact 3
The FTC warns that promises of big, fast profits are a sign of a crypto scam.
The short lesson
A honeypot is a token designed as a trap. You can buy it, the chart may even go up, but when you try to sell, the transaction fails or a giant hidden fee takes almost everything.
The trick lives in the token’s smart contract. It may only allow the creator’s wallets to sell, add a sell tax near 100%, or pause trading for everyone else.
Warning signs
- A brand-new token pushed in a group chat or by a “friend” you met online.
- Lots of buys and almost no sells.
- A name copying a famous project, but a different contract address.
- Pressure to buy fast, before “the launch.”
How to protect yourself
- Get the contract address from the project’s official source, not a chat.
- If you cannot explain who built it and why it is worth anything, do not swap into it.
- Never raise your slippage to extreme levels because someone told you to.
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Related terms
Go deeper in Lesson 9: What hurry and secrets look like
More in Scams and safety
Common questions
Can I get money out of a honeypot token?
Usually not. The contract is built to block it.
Is a honeypot the same as a rug pull?
Related. In a rug pull, creators drain the pool. In a honeypot, buyers simply cannot sell.
Are token scanners reliable?
They can help but miss things. Do not rely on them alone.
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Reviewed and sources
Written and reviewed by Joshua Baskin, founder. Last reviewed . How we check facts · Report an error
Education only. Not investment, tax or legal advice. We do not pick coins.