The Token You Can Only Buy: What Is a Honeypot Scam?

You are browsing a DEX like Uniswap or checking new tokens on DEXTools. You spot a coin with a chart that looks incredible—it’s going straight up. Only green candles, no red ones. Everyone is buying, nobody is selling. You think, "This is it! The next 100x gem!" You buy in. But when you try to take profits, the transaction fails. You have walked into a Honeypot.

1. The Mechanism: A Trap in the Code
A Honeypot is a malicious smart contract that contains a hidden line of code. This code allows anyone to buy the token, but restricts selling permission to only the wallet address of the creator.

• The Illusion: To an outsider, it looks like a booming market. The market cap rises, the liquidity looks deep.

• The Reality: It is a one-way street. Money flows in, but it can never flow out. The scammers wait until the pot is full, then they pull out all the liquidity and disappear.

2. How to Detect a Honeypot
Visual analysis isn't enough. You need tools to simulate a transaction before you risk real money.

• Token Sniffer / Honeypot.is: Before you swap, copy the contract address of the token. Paste it into these free websites. They will run a simulation to see if a "sell" transaction is possible.

• Check the "Sell Tax": Some honeypots don't block selling entirely but set a "Sell Tax" of 99% or 100%. This means if you sell $100 worth of tokens, you get $0 back.

Summary:
If a chart looks too perfect (no dips, only pumps), it is almost certainly a trap. Don't be the bee that drowns in the honey. Always run a contract check before buying a "meme coin" or unknown token.