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Coin Telegraph
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The crypto trap that won’t let you sell — and how to avoid it
- Honeypot crypto scams lure investors with fake liquidity, price movement, and hype, trapping funds permanently by rigged contracts.
- Modern variations of honeypots involve tampered cold wallets sold via platforms like TikTok with preloaded private keys for instant fund theft.
- Scammers now utilize high sell tax honeypots and 'honeypot-as-a-service' kits, making it easier to target both new and experienced users.
- To avoid falling into these scams, it's recommended to test-sell before committing funds, analyze smart contracts, avoid sudden hype, and purchase wallets from official sources.
- Honeypot crypto scams operate by deceiving users into buying tokens that cannot be sold, with the scammer's wallet being the only one capable of withdrawals.
- Honeypots utilize tactics like overriding transfer functions, high sell taxes, hidden blacklists, and fake liquidity pools to trap unsuspecting investors.
- One of the dangers of honeypots is that they can even deceive tech-savvy individuals due to their sophisticated construction and appearance of normal trading activity.
- These scams work by setting traps with fake liquidity, blocking sell functions for victims, and ultimately allowing scammers to drain profits by withdrawing funds.
- Types of honeypot scams include smart contract honeypots, high sell tax schemes, fake or pulled liquidity traps, hardware wallet scams, and 'honeypot-as-a-service' kits.
- Honeypots differ from rug pulls in the way they trap investors, with honeypots blocking selling while rug pulls involve draining liquidity, leaving holders with worthless assets.
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