Glossary
Honeypot
A malicious token or contract engineered so victims can buy in but cannot sell, trapping their funds while the deployer retains a hidden exit.
A honeypot is a scam contract that looks like a normal, tradable token but hides logic that blocks most holders from selling. Buyers see a liquid pool and a rising chart, ape in, and then find every sell transaction reverting — while the deployer keeps a privileged path to drain the liquidity whenever they choose.
Common mechanisms include a hidden blocklist, a transfer tax set to 100% for everyone but the owner, a fake balance that cannot be moved, or modifiable trading rules behind an upgradeable proxy. Some variants target attackers instead, dangling an apparently exploitable bug to bait them into depositing funds. Contract simulation, honeypot scanners, and reading the transfer function before buying are the standard defenses.