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Honeypot token

A token whose contract lets you buy but blocks or taxes selling, so the chart looks healthy while every holder is trapped.

The trick lives in the transfer logic: a whitelist that only permits the deployer to sell, a sell tax of 99%, a maximum transaction size set to nothing, or a blacklist applied to buyers after they enter. Price only rises, because selling is impossible.

Detection tools simulate a buy and an immediate sell and report whether it succeeds, and they catch the crude versions. More sophisticated contracts behave normally until a threshold or a timer flips, so a clean simulation is not proof.

Basic defences: read the contract on a block-explorer, check whether the owner has renounced, prefer verified source, treat any token you did not go looking for as bait, and use a burner-wallet with tiny size for anything speculative. Assume total loss is the base case on unknown tokens.

Related: rug-pull, soft-rug, wallet-drainer, token-blacklist-function

Educational only, not advice. Spotted an error? Post in Site Feedback.