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 een honeypot altijd opzet?

Niet noodzakelijk. Er kunnen technische redenen zijn die niets met opzet te maken hebben. Het signaal vraagt om voorzichtigheid, maar geeft op zichzelf geen oordeel.