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 self-executing code stored on a blockchain that automatically performs actions when certain conditions are met.
Token Contract
A token contract is the smart contract address that defines and manages a token on a blockchain. It is the on-chain source that tells wallets and applications how the token behaves, including its name, supply logic, and transfer rules.
Rug Pull
A rug pull is a crypto scam where project insiders suddenly abandon the project, drain liquidity, or sell large token holdings, leaving users with major losses.