Honeypot Scams: The Crypto Trap That Locks Your Funds Forever
Honeypot crypto scams are deceptive smart contract traps that allow users to buy tokens but prevent them from selling, effectively locking their funds. These scams create the illusion of a legitimate investment with visible liquidity and price movement. Once a user purchases a token, hidden restrictions block any sell or transfer attempts, leaving funds inaccessible. Scammers deploy these contracts on blockchains like Ethereum or BNB Smart Chain, using tactics that exploit FOMO and social proof to attract victims. After enough investors buy in, the scammer sells the tokens or withdraws liquidity, causing the token's value to crash. Honeypots differ from rug pulls; the former locks users in, while the latter disappears entirely. Additionally, scams can extend beyond software to hardware, such as fake cold wallets. To avoid honeypots, investors should conduct thorough checks and buy wallets from trusted sources.
