What is Honeypot?
Reviewed 2026-06-25
Definition: A honeypot is a crypto token you can buy but cannot sell, because the contract blocks selling or imposes a prohibitive exit tax. It traps funds after purchase. Scanning the token contract before buying reveals trade locks and sell restrictions.
How it works
Honeypot contracts allow the buy() path while reverting or taxing heavily on sell(). Common mechanisms include a hidden sell tax set by the owner, a blacklist that adds buyers over time, or a pause function that the owner activates after sufficient funds have entered. The contract may look normal — no obvious red flag in the name or logo — but the bytecode contains the trap. A buy-and-sell simulation run before purchase reveals whether selling succeeds.
How to protect yourself
Scan the token contract before buying. A simulation runs buy and sell in the same block and returns whether selling succeeds and at what effective tax rate. If selling fails or a high tax applies, the token is a trap regardless of how the project presents itself. The scan is free and takes under fifteen seconds.
Frequently asked questions
How do I know if a token is a honeypot before buying?
Run a token contract scan before buying. A simulation tries to buy and sell the token and returns whether selling succeeds. If selling fails or the sell tax is above 10%, the token has a trade lock.
Can a honeypot be reversed after I buy?
Only by the contract owner — which almost never happens in favour of buyers. Once you hold a token that blocks selling, treat the position as a total loss.
Are honeypots only on small or new tokens?
No. Honeypot mechanics have appeared on tokens with large apparent market caps and active communities. The market cap display is separate from whether selling is actually possible.