Ever bought a crypto token that you could never sell? Welcome to the world of honeypot scams – one of crypto’s sneakiest traps!
Imagine a store that lets you buy anything, but the exit door is locked. That’s exactly what a honeypot token is! The smart contract code allows you to purchase the token, but has hidden restrictions that prevent you from selling it. You’re stuck holding worthless tokens forever.
How does it work? Scammers create tokens with malicious code that blocks selling transactions. They pump up the price to attract buyers, making it look like an amazing opportunity. You buy in, watching the price soar, but when you try to sell – transaction failed! Only the creator and their friends can cash out.
These scams exploded in 2025, especially on decentralized exchanges where anyone can create tokens without verification. Scammers often promote them through fake social media hype, bot-generated comments, and fake celebrity endorsements.
How to protect yourself? Never buy tokens you haven’t researched. Check the smart contract on sites like Token Sniffer or Honeypot.is before buying. Look for verified audits, active communities, and locked liquidity. If it promises unrealistic returns or has anonymous developers, run away!
Remember: If you can buy it but can’t sell it, it’s not an investment – it’s a trap. Stay safe, do your research, and never FOMO into unknown tokens!
