Topic: How honeypot scam works and how to detect it. (Read 194 times)

This is basically for those who jump from altcoin to altcoin without them channeling their investment to bitcoin that is trusted and reliable, often time back 2017/18 had witnessed such a thing, and decided not to rush in mostly newly listed coin, especially during the time for ICO, IEO and IDO, they most holds investors as victims and, they usually lock their telegram group so people can't make comments to complained about their actions but those who knows how to figure out these coin doesn't rush to invest without knowing more about the project and team behind the coin. It's also important to follow whitepaper and roadmap to know when the projects team start their manipulations, this also enable you as trader or investor to be vigilant about the next action to be taken by the project team.

Despite the fact that everyone is preaching against using CEX, it is still the preferable option because DEX is still being exploited since there is no central team in responsible for investigating and checking over Smart contracts to ensure it is not a rug pull or HoneyPot scam. There are too many reasons why DEX will never get widespread usage. The chances of somebody being rug-pulled or defrauded on CEX are quite minimal; I'm talking about reputable exchanges, not random start-ups. The current Binance CEO is simply a placeholder; CZ still oversee things in the background; his only purpose for resigning publicly was to rescue Binance from seizure.


Most coins maintain upward trends for days and even weeks before dropping so I don't think this is enough.

Thanks for the tips (and tools!). Honeypots used to be a big deal back in 2021 when BnB season was the order of the day. That's when we got the birth of memecoin projects like Shiba inu and floki. I haven't heard much of this type of contracts on much newer chains of this market cycle especially those on Solana and Sui ecosystems. In the end, it's just to cautious and careful before indulging in anything because in this crypto, anything can happen. Rugs would still be rugs.

This is a step by step scamming process, it is a well organized safe atmosphere that shows the different activities of attackers and threat,when using honeypot network,it helps the security personnel not to be distracted by real traffic,they are more focused on the threat including catching internal threats.
The honeypot detector is used by the securities to detect a counteract activities that has not being given permission by an unauthorized use of information system.
In cryptocurrency, honeypot scam can even deceive the most experienced crypto user, because of the complication of blockchain technology ,they also has a non visible technology used to empty their victims funds or prevent them from withdrawing their funds, they offer a high returns profit at the beginning to make it look real,they build trust among their victims ,they allow customers to make withdrawal and deposit in small amount,but they don't allow withdrawal of large funds.

It may be difficult for most people to detect but for me I don see shegeh for crypto so I don't even need app to know if it's a scam project or not. Not that the app you bring is not helpful, I love it and will recommend as many people as possible to use the link you have provided to avoid the risk of Honey pot. This thread is very useful expecially for both newbies and old members.

How I know if I project is a scam is that

1) if the market cap is low and the price keep rising for some days without falling I know it's a honey pot.

2)if the total number in circulation is very high like trillions of coins and yet it has a significant or reasonable price, it's obviously a scam.

The truth is that honeypot is easy to detect. Just like you said it is easy to buy buy not possible to sell, that just it. If if it's Dex wallet you will increase your slippage tolerance to the highest yet not possible to swap, or they will display something like low liquidity pool. That is to tell you that immediately you buy such coin, you have Given them liquidity and have accepted rug pull without your knowing so Invariably you own nothing than chaff. But I don't think if honey pot are much In CeX. The few I have encountered, after buying i saw that it was drastically dropping, so i wanted to sell but it wouldn't sell until it fell below the amount I can't sell that is less than $5.


That is a perfect explanation of how honey pot works. In adding to your explanation, honey pot 🍯 be like trap/cage wey dem set for bush meat with some kind of things wey dem put am to attract am, imidiately the bush meat enter inside the cage go chop wetting dey inside, the cage don lock 🔒 emself till the owner of the trap go come catch am.

When I was fully into altcoins investment, that it was only altcoins that I was buying, I had a strategy that I didn't buy any coin that wasn't listed on top exchanges, this way it prevented me from investing into scams like the honeypot scenario although it also made me missed out potential gems that aren't on Cex yet or listed in top gem.

But atleast I didn't fall for scams. This strategy mightn't be very effective again as now, exchanges list anything they see just for the trading volumes and revenue they can generate.

This is one reason I don't trust projects on Binance exchange again to even trade especially after this new CEO came in, the guy just they list anything wey him see.

Shall one way to avoid all this scams na to avoid altcoins but I know say na so some of us they carry see food chop so make we just they careful and know that all altcoins investment are pure gambling.

Exactly one of the point because decentralized exchanges does not provide an avenue were people can really see if there are people who are currently buying or selling, they keep everything very dark which makes it difficult to identify whether is real or not, though the only thing those decentralized exchanges normally do is that whenever you are trying to look for a particular token using there contract address they would only inform you to be sure of the coin you are trying to buy because they already no that scammers are all over the platform looking for whom they will suck dry of there Puckett.

I don't even believe that token with large price impact and low Liquidity is the best solution to escape being scam because before you will talk about price impact is already when you have gotten the token then during sell is were the liquidity and price impact will come in play and by then the person is already scammed, so the only way is to leave everything about those token.

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.

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.

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.

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.

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.

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.

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.