Crypto Safety Tips › Honeypot Tokens
The short answer: A honeypot is a token you can buy but can't sell, or can only sell at a huge loss because of a hidden or raised sell tax. The chart looks great because nobody can sell. Before buying, check that other wallets have actually sold, look for sell taxes and whether they can change, and be wary of any token with lots of buys and almost no sells.
How does a honeypot work?
The token's contract lets anyone buy, but blocks or heavily taxes selling, sometimes only for wallets that aren't the developer's. Because nobody can sell, the price only goes up, which attracts more buyers. When the developer cashes out, everyone else is stuck.
Warning signs
- Many buys and almost no sells in the recent trades.
- A sell tax, especially one the developer can raise later.
- A chart that only goes up, with no pullbacks at all.
- A contract you can't check, or that has been changed since launch.
- Pressure to buy fast before you have time to look.
How do I check a token?
- Look through the recent trades for sells from ordinary wallets.
- Use a token checker tool that simulates a sell and reports taxes. Treat it as a hint, not a guarantee.
- If you still can't tell, don't buy. Missing a pump costs you nothing.
Quick questions
Can a token become a honeypot after I buy it?
Yes, if the contract lets the developer change taxes or restrictions later. That is why a changeable sell tax is a red flag.
Is a high sell tax always a scam?
Not always, but a high or changeable sell tax means you can lose much of your money when selling. Treat it as a serious warning.
In owl.fun, a dev can raise the sell tax to 99% and trap every holder. Owl Eyes shouts about it, just as you should check in real life.
Keep learning
General safety information, not financial or legal advice. HooTang Clan has no token, and nothing on this page is a reason to buy anything. Report fraud to Action Fraud, or Police Scotland on 101.