Honeypot scams deceive investors by creating the illusion of liquidity and price movement while secretly locking their funds. These scams often involve manipulated smart contracts that allow purchases but block sales, trapping users. Modern variations include tampered cold wallets sold on platforms like TikTok, which are preloaded with private keys for instant theft. Scammers employ tactics such as excessive sell taxes and hidden blacklists to ensure only they can profit. Even experienced investors can fall victim, as tools like Etherscan may show verified contracts, masking the underlying traps. To avoid these scams, investors should test small transactions, use smart contract scanners, and be wary of sudden hype. Recognizing the signs of a honeypot scam can save you from significant losses. Always buy wallets from trusted sources and conduct thorough research before investing. Remember, while honeypots and rug pulls are both scams, they operate differently, and understanding these differences is crucial for protecting your investments. Read more AI-generated news on: https://app.chaingpt.org/news