What Is a ‘Honeypot’ Contract in the Context of Crypto Scams?

A honeypot is a malicious smart contract designed to lure investors by allowing them to buy a token but preventing them from selling it. The contract code includes a function that only allows the creator's address to sell, effectively trapping all other users' funds.

The price artificially rises as people buy, creating the illusion of profit, until the scammer drains the liquidity. It is a highly deceptive and common form of crypto fraud.