Topic: Be Cautious of honeypot token - page 2. (Read 207 times)

I got an Airdrop token about $100,I told a friend of mine about it but his reply was like 'Have you heard about Honeypot token scam', I was perplexed at first,Then I did research about it and discovered that the $100 dollar Token is an Honeypot token. Here is what I found out from my research :
Honeypot is a term use by Cyber security professionals to tag something that attract one's attention and then trap them.
Honeypot crypto scam are Tokens which one are unable to sell. This is different from lock tokens because when you try to swap or sell the token your gas fee are stolen and transferred to the scammer wallet. It may look cheap but imagine accumulating gas fees of about a thousand victims, that huge right?
Aside from stealing the gas fee the scammer may also be able to steal wallet key phrases.

How to discover honeypot token
They are mainly created on Ethereum, Binance and Polygon Blockchain.
If the token is on binance smart chain then you can search for the token on bsc scan through the token Contract Address and look for its liquidity (check the numbers of sell order of the token),while use EtherScan for Ethereum token and Poly Scan for polygon token.
When checking for the number of sell order, observe that if the number of sell is small be cautious and if they are no sell order then it will likely  be an honey pot token.

Note: If you see only green candles on the chart across all timeframes, chances are, there have been no sell order and so its likely a honeypot token

If the token is on binance smartChain you can also use Poocoin to check for the liquidity.

There are other ways to know if a token is an honeypot, this include
1 Verifying their website :
If the website has a poor development that a warning. You can also check when the domain name is registered by typing the domain name on  whois.domaintools.com and if the token is registered some hours or 24 hours before the project starts, then its likely a scam.

2  They don't have review from Trustworthy company

3 Avoid Tokens having few or wallet for holding it

4  Check their Social Media Account. Scam projects usually have stolen and low qualities photos, grammatical errors, no links about the information of the project and making post like : drop your Eth address

5  Check for reviews about the Token before investing

6  Sending spamming messages in your Dm, which includes their wallet key phrases. This is mainly seen on Twitter, Discord, Facebook and any other social media.
I once got one on Twitter, Never what it was called but I knew definitely that it was a scam because of the fact that no body will just give out their wallet key.



There are other ways for identifying Honeypot Token, So I will like those who don't know about this scam to  do more research, To know more about how it works and how to identify them