What Is a Honeypot in Web3?
A honeypot in Web3 is a deceptive smart contract designed to lure users into buying a token that they ultimately can’t sell. These tokens are disguised as legitimate investments—often promoted as the next big opportunity—but contain malicious code that traps your funds once you buy in.
How the Scam Works:
Token Launch & Promotion
Scammers deploy a new token and aggressively promote it on social platforms like X (formerly Twitter), Telegram, and WhatsApp. These campaigns are filled with hype and false promises to draw attention.
Faking Popularity
Artificial liquidity and fake transactions are used to simulate market activity. This creates the illusion of a booming token, triggering FOMO (fear of missing out) and encouraging more people to invest—some genuinely, others through automated hype tactics.
Springing the Trap
Once enough buyers are in, the scam reveals itself. When users try to sell the token, transactions fail or permissions are denied. The contract is intentionally coded to block sales or the liquidity is suddenly pulled, locking users in and letting the scammers walk away with the funds.
Repeat the Scam
After draining the project, the scammers move on and set up a new honeypot, repeating the cycle and targeting new victims.
