Honeypot tokens: what they are and how to spot one
A honeypot token is a crypto scam that lets you buy but blocks selling. Hidden code blacklists wallets or charges an extreme sell tax, trapping buyers.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- Hidden code can blacklist wallets or disable selling.
- Failed sell tests and extreme sell taxes are warning signs.
- A rug pull removes liquidity; a honeypot blocks selling.
- Report traps to the FTC and FBI's IC3.
In cryptocurrency, a honeypot is a trap built into a token. The creator makes it easy to buy and hard to sell. A scanner or sell simulation can check a contract before you trade.
How does a honeypot token work?
A honeypot token is a scam contract that lets buyers buy but blocks selling. The creator writes code that runs when someone tries to sell. That code can blacklist your wallet or turn off the sell function for everyone except the owner.
What are honeypot warning signs?
A failed sell test is the clearest sign. If a sell simulation fails while a buy works, the contract may block non-owners. Other signs include owner-only selling and a sell tax far higher than the buy tax. Since the early 2020s, token scanners and sell simulations have become common checks.
Honeypot vs rug pull and what to do
A honeypot blocks selling. A rug pull removes liquidity, so price collapses. They can overlap, but the block on selling is the main difference. If you are trapped, document your transactions and report the scam to the FTC and the FBI's Internet Crime Complaint Center.
Frequently asked questions
Usually no. A honeypot blocks the sell function, so slippage does not change the result.
No. Detectors look for known patterns, and a new contract can hide the trap. A clean scan is a useful signal, not a guarantee.
The code itself is not a separate crime. Using a honeypot to take money is fraud, and fraud is illegal under US law. The FTC and FBI can investigate.
Usually no. Blockchain transactions are final, so you cannot reverse a buy on your own. Law enforcement may help, but recovery is rare.
