Honeypots

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Overview

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How Honeypots Work

1. Token Launch: Scammer deploys a token with hidden restrictions
2. Marketing: Token is promoted on social media and trading channels
3. Buy Phase: Victims purchase the token without issues
4. Trap Activated: When victims try to sell, transactions fail or incur extreme fees
5. Exit: Scammer drains liquidity, leaving holders with worthless tokens

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Types of Honeypots

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Blacklist Honeypots

• Specific addresses are blocked from selling
• Often whitelist only the deployer or insiders

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Fee-Based Honeypots

• Normal buy fees but extreme sell fees (90-100%)
• May start with low fees that increase over time

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Balance Manipulation

• Contract manipulates displayed balance
• Actual transferable balance is zero or minimal

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Cooldown Honeypots

• Extreme cooldown periods between transactions
• Users can buy but must wait impossibly long to sell

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Detection Indicators

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API Example

curl -X GET "https://api.webacy.com/tokens/0x123...?chain=eth" \
  -H "x-api-key: YOUR_API_KEY"

{
  "overallRisk": 98.0,
  "issues": [
    {
      "tag": "honeypot",
      "severity": "critical",
      "description": "Token prevents selling - honeypot detected"
    },
    {
      "tag": "cant_sell_all",
      "severity": "high",
      "description": "Unable to sell full token balance"
    }
  ]
}

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Red Flags

• No sells in transaction history - Only buy transactions visible
• Failed sell transactions - Multiple reverted sell attempts on-chain
• Unusual contract code - Hidden functions or obfuscated logic
• Locked liquidity claims - But liquidity can still be removed
• Anonymous team - No verifiable team information

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Protection Strategies

1. Test with small amounts - Try selling a tiny amount before investing more
2. Check transaction history - Look for successful sells by other wallets
3. Use token scanners - Run the contract through security analyzers
4. Verify contract code - Check if contract is verified and readable
5. Research the project - Look for red flags in community and marketing

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Related Concepts

• Tax Tokens - Tokens with excessive transaction fees
• Rug Pulls - Liquidity removal scams
• Fake Tokens - Impersonator tokens