Honeypot
A honeypot is a scam token that allows users to buy but prevents them from selling.
✦ Key Insight
It traps traders who think they are buying a normal token.
✕ Common Misconceptions
Buying unknown tokens without checking contract behavior.
Detailed Explanation
How It Works
The smart contract includes hidden rules that block sell transactions or heavily restrict transfers.
Related Terms
Token Contract, Smart Contract, Rug Pull, Scam Token
FAQs
How do I detect a honeypot?
Use trusted token scanners and check whether real users are selling successfully.
In Practice
Dig Deeper
Smart Contract
A smart contract is blockchain-deployed code that can hold state and execute predefined rules when called.
Token Contract
A token contract is a smart contract that defines and manages a token's balances, transfers, supply, and other programmable rules.
Rug Pull
When a project's team abandons it and takes investors' funds, usually by removing liquidity or dumping their allocation.