# Honeypot

> A token or contract designed to lure buyers in and then prevent them from selling.

Canonical URL: https://fudfomo.co/glossary/honeypot
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

A honeypot is a malicious token or contract that is built to look attractive but trap any funds that enter it. A common pattern is a token contract that lets people buy but blocks sales unless the address is on an allow-list.

The price chart looks healthy because nobody can actually exit. Tools that simulate sales before you buy can help spot honeypots, but the safest approach is to be very cautious with new tokens from unknown teams.

## Related terms

- [Rug Pull](https://fudfomo.co/glossary/rug-pull): A scam where the creators of a token suddenly drain liquidity or sell their stash, leaving holders with worthless tokens.
- [Smart Contract](https://fudfomo.co/glossary/smart-contract): A program that runs on a blockchain and does what it says, automatically.
- [Exit Scam](https://fudfomo.co/glossary/exit-scam): When the people running a project disappear with users' money.

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