Honeypot

🍯HONEYPOT (Trap Tokens)

📌 Definition: A honeypot is a scam where investors can buy tokens, but it is technically impossible to sell them. From the outside, the token looks tradable. But only special "whitelisted" addresses can sell. All other users are forced to hold their tokens without exit.

🔧How Does It Work

1. The admin creates a token contract with hidden sell restrictions.

2. The token is listed on a DEX. Fake small trades may be made to simulate real activity.

3. Regular users can buy the token. But sell functions (transferFrom, swap, sell) fail for non-whitelisted wallets.

4. The project gains attention. More users buy the token.

5. The admin sells their tokens at a high price and removes the funds.

6. Buyers cannot sell, and their tokens lose value as the price approaches zero.

🧾Smart Contract Techniques Used

Method	Description
transfer() or transferFrom() checks	Only certain addresses can transfer; others trigger a revert error.
Fake approve() success	approve() seems to work, but swap fails during actual DEX trading.
Use of blacklist, whitelist, maxTx	These parameters are used to block sales from normal wallets.
Gas limit manipulation	Transactions are sent but always fail due to low gas limits.

⚠️ Hidden Trap Methods (Technical)

Trap Method	How It Works
Hidden revert in transfer	Only specific addresses can send tokens; all others fail.
Swap blocking	Token blocks DEX swaps using custom contract logic.
MaxTx / MaxSell manipulation	Fake sell limits trick users, but no one can actually sell.
Gas trap	Transaction is submitted but always fails due to low gas.

🛡️ Ways to Protect Yourself

Security Tip	Why It Matters
Use audited tokens	Always review the full transfer function if possible.
Run simulation tests	Try a small test sale after buying the token.
Use blockchain scanners	Tools like Honeypot.is or RugDoc can detect traps.
Check verified contract code	Avoid tokens with unverified code on platforms like Etherscan.
Check trade history	Confirm if real users have been able to sell the token.

🔍 Sample Tools for Detecting Honey Traps

1

https://honeypot.is/ – The most popular honeypot scanner

2

RugDoc.io – Security reviews and risk ratings

3

Dextools.io – Look for “No Sell Tx” warning in token logs

4

GoPlusLabs Token Security API – Checks for Transfer, Approval, and transferFrom limits