Honeypots (Tokens You Can't Sell)
A honeypot lets you buy but blocks selling. The price can look great while you're quietly trapped. A tiny test sell before committing more is the simplest defense.
What it means
In a honeypot, the token's code allows buys but blocks or heavily taxes sells for ordinary holders. Only whitelisted wallets (the creator's) can exit.
Why it matters
It weaponizes FOMO. The chart only goes up — because almost no one can sell — which pulls in more buyers whose money is then stuck.
What happens if you ignore this
Once you're in a honeypot, there is usually no exit. The 'value' on screen is unrealizable, and the creator drains the real liquidity later.
How it works
Before committing real size, a small test sell tells you whether selling actually works. If a small sell fails or is taxed absurdly, assume the worst and don't add more.
Story
Leo buys a token that's up 300% with a chart that never dips. It feels like free money.
He plans to sell half at 5x and ride the rest.
When he tries to sell, every attempt fails. The token is a honeypot — buys work, sells don't. His balance is frozen at a fake number.
A price that only goes up can be a warning, not a gift. A small test sell right after buying would have revealed the trap for a few cents.
Beginner tips
- A chart that literally never goes down is suspicious, not reassuring.
- Do a small test sell soon after buying something brand-new and unaudited.
- If a sell fails or is taxed extremely, don't 'average in' — get out of the mindset, not deeper in.
Common mistakes
- Treating a one-directional chart as proof of a healthy token.
- Adding more funds to 'lower your average' in a token you've never successfully sold.