DeFi investors face an escalating threat from sophisticated honeypot scams designed to permanently trap funds. These scams exploit smart contract vulnerabilities, allowing users to purchase tokens but preventing them from selling, effectively locking investments indefinitely.
Emerging variants significantly broaden the danger. Beyond classic on-chain traps, attackers now deploy wallet drainers capable of stealing assets beyond the honeypot token itself. The proliferation of ‘honeypot-as-a-service’ kits also lowers the barrier to entry for scammers, expanding the attack surface.
Common tactics include implementing exorbitant sell taxes, sometimes reaching 100%, and creating illusions of liquidity through fake pools. These scams prey on fear of missing out (FOMO) and the allure of quick profits.
Distinct from rug pulls where developers abruptly withdraw liquidity, honeypots ensnare funds within the contract itself, making detection more challenging. Victims find their assets inaccessible.
Experts advise caution and recommend protective measures. These include attempting small test sells before significant investment, blockchain blockchain scam detection tools, rigorously verifying liquidity lock mechanisms, and strictly avoiding purchasing hardware wallets from unofficial sources.