Honeypot token

A honeypot token is a token that can be bought but cannot, or barely, be sold. The cause often lies in the code of the token itself, which blocks or limits selling. Whether a token works this way is not always visible in advance and sometimes only emerges when someone tries to sell.

What it may indicate

When buying succeeds but selling keeps failing, that can be an indication that the token was set up to trap those who step in. There can also be technical reasons that have nothing to do with intent. The signal calls for caution; it does not deliver a verdict.

Someone bought a new token that appeared to be rising in value but could not sell anything when they tried. Whether the block was deliberately in the code or a fault can be established by examining the code and the transactions of other holders.

What is a honeypot token?

A token that can be bought but cannot, or barely, be sold, often because of code that blocks selling.

Is a honeypot token always set up on purpose?

Not always. There can be technical reasons too. Whether it was deliberate emerges from examining the code and the transactions of other holders.

Is a honeypot always deliberate?

Not necessarily. There can be technical reasons that have nothing to do with intent. The signal calls for caution, but in itself it is not a judgement.

What can you check before you buy a token?

Look at whether other holders have actually been able to sell, whether the contract has been published, and who controls the permissions. A token in which almost every transaction is a purchase and hardly any is a sale is worth a second look.

How does Paucitas look at a honeypot token?

We follow the money that went in and establish where it ended up, and we describe the contract behaviour that made selling impossible. That is recorded factually in an investigation report. With that report a later police report has substance. The first step is a conversation with Paucitas.

Your own situation

If you are reading this, you probably have a question about your own situation. That is exactly what Paucitas does.

The first step is contact by phone. We prefer to schedule that call through WhatsApp, so you do not have to wait. In the call we look together at what can factually be established in your case and what Paucitas can examine for you.

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