Honeypot token

A honeypot token is a scam token whose smart contract lets people buy but blocks them from selling, or charges a sell tax close to 100%. Buyers see the price rising on the chart, since only buying is possible, and rush in, only to discover their tokens cannot be sold. The creator then sells or withdraws the liquidity.

Honeypots are common among new memecoins on chains such as BNB Chain, Ethereum, Base and Solana, often promoted in Telegram groups and on social media with screenshots of huge gains. The restrictions are hidden in the contract code, sometimes behind functions such as blacklists, trading switches or adjustable tax rates that the owner can change after launch.

Before buying a new token, check it with a token scanner such as Token Sniffer or GoPlus Security, see whether anyone has managed to sell, look for verified source code and renounced ownership, and be suspicious of tokens with tiny liquidity and a single holder controlling most of the supply.