Honeypots are when buyers can buy a token but cannot sell it.
Honeypots - prevents the resale of the token by buyers. Failure to sell causes the price of the coin to continually rise until the scammers want to stop the process. This makes the token attractive to more users, resulting in a high value. This is why honeypots are the most popular and effective from a marketing point of view - they allow you to manipulate users and the price of the coin.
Most honeypots are implemented in four ways:
Blocking liquidity pools. When they prevent users from sending their tokens to the smart contract of the liquidity pool of a given token, which is a necessary step when selling/exchanging a token. Only token purchases are allowed.
Use of external contracts. When the ability to transfer tokens is implemented in a separate contract, the source code of which is not public. This private contract blocks token sales and exchanges for all addresses except the developer/owner’s own address.
Blacklists/whitelists - the developer/owner of the token regulates the right to sell the token with a blacklist or whitelist. In the blacklist option, any user who purchases a token is added to the blacklist either manually or automatically. In the whitelist option, the token owner’s address is usually the only address from which sales are allowed.
Hidden mints are when the developer/owner of a token can increase the supply of the token indefinitely by allowing one or more external accounts (in this context, the personal addresses of the token developers) to mint new tokens using a hidden function in the token contract. Once this function is called, the scammer can dump these additional tokens into the market, devaluing tokens held by others.
Fake ownership renunciations are when the developer/owner of a token pretends and creates the impression that he is not the owner of the token smart contract and does not have access to perform administrative functions. In reality, the fraudster continues to be the owner and therefore can still call owner-only functions such as suspending trading, issuing additional tokens, or adjusting fees.
Hidden balance modifiers - allows the developer/token owner to directly edit the balances of users - token holders. If the contract owner sets the holder’s balance to zero, he will not be able to sell his tokens, which makes this scam similar to a honeypot.
Hidden fee modifiers - hidden commission modifier. Allows the developer/token owner to increase the commission for the sale of the token up to 100%.
Hidden max transaction amount modifiers - hidden modifier for the maximum volume of a token transfer. Allows the developer/owner of the token to reduce it down to 0.
Hidden Transfers (hidden transfer) - allows the developer/token owner to freely transfer tokens between other people’s accounts (or take tokens from the user’s account and transfer them to their own).
If the token you want to check is running on the Ethereum network, use the Etherscan service. On the main page, enter its name in the search bar and start searching. You will be able to find out the addresses of the main holders, view completed transactions, and most importantly, find out whether the token code is hidden
To summarize the above, be careful and always double-check the information about the token in which you want to invest.
you can check the token for fraud here:
