How honeypot scam works and how to detect it.

[Josefjix]

Most of you have probably been in crypto for a long time, but you still fall for the honey pot scam. It is very difficult to detect, and both experienced and inexperienced traders fall for it because it has to do with the source code, and not many people know how to verify source codes; they are only interested in the sell/buy books and chart movements. Let me explain the term "HoneyPot."

Terms HoneyPot and how it works

The term "Honey Pot" simply refers to dipping your hands into a very sweet pot full of honey until you have all of the honey on your finger and are unable to remove it from the pot. (coins) and watch your coins exceed 3000X ROI but are unable to sell. Basically, the scammer enters something into the contract code that only allows him or a few whitelisted addresses to withdraw. They launch this coin, and it only goes up, and people rush in to buy, believing they have discovered a true gem. These scammers sometimes allow the coin to pump for a few days to allow more buy-in, and when you finally think you have made enough, you discover that you can not sell or withdraw; you are stuck in for good. Only scammers and whitelisted addresses have the ability to withdraw.

Sample of HoneyPot token pump chart



Some tools to detect Honeypot tokens.

https://detecthoneypot.com = This tool works for all blockchains.

https://poocoin.app—enter the token ID to watch the charts if you noticed that only a few wallets are selling. avoid such a coin. (BSC tokens only)

https://tokensniffer.com - scan token ID for token for smart contract check.

[Salahmu]

That is why people should be careful in using decentralized exchanges for buying of anything they are not sure of because I noticed that those kind of scammers only operate within decentralized exchanges because it doesn't take much for them to put there scam token on it  since they normally operate based on contract address importantation and when those people who normally like such altcoin will be tempted to purchase,so people should be very mindful because they operate in diverse form because there are some that duplicate another project contract address and change few things in other to disguise themselves to scam people of there money, na waiting make Bitcoin investment make sense because when person they only reason Bitcoin you no go they care about any other thing, so nothing go fit make the person dance to there turn.

[Josefjix]

That is why people should be careful in using decentralized exchanges for buying of anything they are not sure of because I noticed that those kind of scammers only operate within decentralized exchanges because it doesn't take much for them to put there scam token on it  since they normally operate based on contract address importantation and when those people who normally like such altcoin will be tempted to purchase,so people should be very mindful because they operate in diverse form because there are some that duplicate another project contract address and change few things in other to disguise themselves to scam people of there money, na waiting make Bitcoin investment make sense because when person they only reason Bitcoin you no go they care about any other thing, so nothing go fit make the person dance to there turn.

There are too many scam and fast Gem tokens on DEx exchanges; no audit, just mint a token, launch, add some liquidity, and start advertising, but as I previously stated, it's really tough because some HoneyPots might be dynamic, allowing the owner to switch off/on the sell at any time. Without those tools, it's impossible to identify whether a token is HoneyPot or not. Another major reason why new and inexperienced traders should avoid DeX exchanges.

[Troytech]

That is why people should be careful in using decentralized exchanges for buying of anything they are not sure of because I noticed that those kind of scammers only operate within decentralized exchanges because it doesn't take much for them to put there scam token on it  since they normally operate based on contract address importantation and when those people who normally like such altcoin will be tempted to purchase,so people should be very mindful because they operate in diverse form because there are some that duplicate another project contract address and change few things in other to disguise themselves to scam people of there money, na waiting make Bitcoin investment make sense because when person they only reason Bitcoin you no go they care about any other thing, so nothing go fit make the person dance to there turn.

Thats true mate. In a situation when buying coins in decentralized exchange we dont get see the seller and he too dont get to see us who is buying (By see i meant orders) in the exchange. And a lot of investors dont care they just buy the coin without knowing the liquidity that was added to it Some coins are being traded in the decentralized exchanges with low liquidity and there is disadvantages to that. It casus price impact and before you know instead of you buying at the price which was shown you end up buying at  higher price.

Coins or tokens with large price impact and low liquidity should be traded on in the exchange. That is one way w can easily identify fake or scam coins in the exchange.

[Lida93]

There are too many scam and fast Gem tokens on DEx exchanges; no audit, just mint a token, launch, add some liquidity, and start advertising, but as I previously stated, it's really tough because some HoneyPots might be dynamic, allowing the owner to switch off/on the sell at any time. Without those tools, it's impossible to identify whether a token is HoneyPot or not. Another major reason why new and inexperienced traders should avoid DeX exchanges.

The category of dex users that prioritize their privacy a lot against the use of CEX would be having a differ view on this as it's no sufficient reason for anyone to avoid using Dex's. Just as you have provided channels through which users could use to do their own research about any coin against the backdrop of honeypot scam before buying into it. Hence, it's the responsibility of users both Dex and CEX users to be vigilant while utilizing these platforms because they come with their various different disadvantages. I think also, that people should be very weary of unpopular coins especially one that's with no significant trading volume.

[DubemIfedigbo001]

Honeypot scams really offers too good true opportunities which the victim enters with the hope of making it big and ends up being the sacrificial lamb and like the name goes, such opportunities are too sweet looking until you are hit with the reality that your funds are gone. The Honeypot scams are effected in three stages

a) Setting the trap: This is the stage whereby the mouthwatering opportunity is set up either in crypto field or other enabled environment, active maretting is done to promote these projects through running ads on social media and even via influencers to spread the news and channel victims through the various trap funnels into the investment pit.

b) Closing the trap : At this juncture the owners of the fake project have amassed some considerable wealth margin and are ready to trap users funds,, they make slight adjustments to their code to prevent further withdrawals while still accepting new investors. Most times people are not even allowed to withdraw their funds from the onset as only the scammer or few selected users are allowed to withdraw on the platform.

c) Exit : At this point the scammer makes away with the users funds, leaving the investor trapped and unable to withdraw his investment and in some cases of crypto the liquidity is sharply removed and the coin amounts to nothing.

TYPES OF HONEYPOT SCAMS

• Crypto scams : e.g. fake token sales, fake exchanges e.t.c
• Investment scams : e.g. Fake E-commerce websites, Ponzi schemes
• Social scams e.g. Dating scams

Honeypot scams are well organized and most times targets unsuspecting and greedy clients. So the next time you see an offer do well to scrutinize it very well and do not embrace offers that are too good to be true or have suspicious undertones.

[Moreno233]

That is why people should be careful in using decentralized exchanges for buying of anything they are not sure of because I noticed that those kind of scammers only operate within decentralized exchanges because it doesn't take much for them to put there scam token on it  since they normally operate based on contract address importation and when those people who normally like such altcoin will be tempted to purchase,so people should be very mindful because they operate in diverse form because there are some that duplicate another project contract address and change few things in other to disguise themselves to scam people of there money, na waiting make Bitcoin investment make sense because when person they only reason Bitcoin you no go they care about any other thing, so nothing go fit make the person dance to there turn.

There are too many scam and fast Gem tokens on DEx exchanges; no audit, just mint a token, launch, add some liquidity, and start advertising, but as I previously stated, it's really tough because some HoneyPots might be dynamic, allowing the owner to switch off/on the sell at any time. Without those tools, it's impossible to identify whether a token is HoneyPot or not. Another major reason why new and inexperienced traders should avoid DeX exchanges.

I have been a victim of this before and I was lucky it was just small amount I put in, so the damage was not devastating. Pancake Swap and other DEX are usually a dumping ground for those shitcoins that are usually created by an individual or few individuals and listed in DEX thereafter they will start the manipulation of the price and volume to attract victims. They might just dedicate few wallets to be performing the buying and selling to create this false sense of liquidity. I bought the pump without being able to sell because the price dumped immediately very fast.