The Mechanics of Honeypot Scams: Why Crypto Investors Keep Falling Into This Trap

Honeypot scams remain one of the most persistent threats in the cryptocurrency space, yet countless traders continue to lose substantial sums to this straightforward yet effective scheme. The premise is deceptively simple: scammers create a token that appears purchasable on decentralized exchanges, but victims discover too late that they cannot sell what they’ve bought. Once liquidity is locked, the perpetrators vanish with all the funds.

How the Honeypot Strategy Actually Works

The mechanics follow a predictable pattern repeated across numerous Telegram channels and promotion groups. Initial messaging employs aggressive hype around potential returns—talk of X’s or even dozens of X’s if you purchase at the “right moment.” The critical instruction always follows: acquire the asset exclusively through a DEX (decentralized exchange).

As buyers pour in through the DEX interface, the token’s price naturally climbs. This ascending chart fuels more purchases. However, the price rise masks a critical flaw embedded in the smart contract itself: sell functions are deliberately disabled. While the token appears liquid during purchase, attempting to sell reveals the honeypot trap has sprung.

What makes this strategy devastatingly effective is a combination of three factors: investor greed, insufficient due diligence on the buyer’s part, and the inherent complexity that deters deeper investigation. As long as new market participants remain eager to capitalize on potential gains without researching what they’re buying, scammers will continue profiting.

Real Honeypot Cases Now Circulating

Recent surveillance of major Telegram channels revealed coordinated honeypot campaigns. The “Antonov Strategy” channel, which boasted 74.7 thousand subscribers, launched a third scam token using this same honeypot approach. Currently, they’re promoting EGL, a counterfeit token mimicking the legitimate EigenLayer project.

What’s particularly notable is that multiple independent channels are simultaneously promoting tokens with identical tickers. Both Crypta Elliott (18.2 thousand subscribers) and Project | 1.618 (16.7 thousand subscribers) are pushing tokens labeled EGL—yet these are separate scam coins sharing only the ticker name.

According to HoneypotIs scanning services, the honeypot token from the Crypta Elliott channel has already drained approximately $468,500 from victims. This figure was even higher the previous day, exceeding half a million dollars. The data tells the story: when victims attempt to exit their positions, they discover they cannot sell, and liquidity mysteriously disappears into scammer wallets.

How to Detect Honeypot Schemes Before You Buy

Detection requires checking before committing funds. The HoneypotIs service (among other similar tools) provides a straightforward assessment: if the scan returns “HONEYPOT DETECTED”—stay away. Similarly, if the service cannot determine whether a token is a honeypot, that inability itself is a red flag suggesting the token is designed for scamming.

Advanced analysis through PoocoinApp reveals purchase patterns that often expose the scam’s orchestration. Large initial buys frequently come from the scammers themselves—establishing initial liquidity to attract retail investors. The $248,000 purchase visible in one scam token’s transaction history likely represents the scammers’ own capital seeding the pump. Subsequent victims, showing losses in the tens of thousands of dollars, believed they were making a calculated investment.

The Simplest Defense: Just Say No

Ultimately, the most effective protection is straightforward: ignore aggressive calls to purchase tokens on DEX exchanges—especially when promises of explosive returns are involved. Scammers succeed because sufficient numbers of traders rationalize: “Maybe this one is legitimate.” It never is.

The bull market cycle perpetuates this cycle. Scammed investors exit, fresh capital enters seeking opportunities, and scammers simply launch new channels through Telegram advertising networks. They require minimal funding to restart their operation since even small percentages of stolen liquidity fund new promotional campaigns.

The responsibility for protecting your capital rests entirely with you. Research the assets you’re considering. Investigate the channels promoting them. Understand where and how you’re purchasing. Verify smart contract functionality through available tools. Your money will not protect itself—but these precautions will.