As early as January 2026, experts from BI.Zone Digital Risk Protection identified more than 700 fraudulent crypto projects offering “profitable” investments in digital assets.
Today, there are many scams involving malicious websites and tools that steal cryptocurrency. One of the most common fraudulent schemes is a HoneyPot (bait).
What is HoneyPot?
HoneyPot is a term used to describe cryptocurrency projects created solely for fraudulent purposes.
The word HoneyPot literally means “a pot of honey”—in cybersecurity, it refers to a trap designed to attract a victim.
The concept of a HoneyPot emerged more than 30 years ago, during the early days of computer hacking. With the development of cryptocurrencies, this mechanism has become widely used in the blockchain industry.
In a HoneyPot scheme, attackers use an “attractive” asset — for example, a rapidly growing token or a high-yield instrument.
Most often, HoneyPot takes the form of new cryptocurrencies built on smart contracts that deliberately embed vulnerabilities. These vulnerabilities allow scammers to quickly withdraw users’ funds.
How the HoneyPot scheme works
The most common scenario is the creation of a proprietary token. The HoneyPot scheme usually unfolds in several stages:
1. Project creation
To launch a HoneyPot, scammers develop a smart contract and issue a digital asset.
At the same time, the code initially includes functions that allow only the creators of the asset to withdraw funds. A regular user can buy the asset but cannot sell or withdraw it.
Sometimes, such tokens imitate popular crypto projects. For example, similar situations previously occurred with zkSync (ZK) and Shiba Inu (SHIB).
2. Promotion
Next, in the HoneyPot scheme, aggressive marketing is launched to attract as many victims as possible.
Various communication channels are used:
- social media and direct messages;
- search engine advertising;
- websites and video blogs;
- influencers (opinion leaders).
Often, as part of the HoneyPot, attackers artificially inflate the price of a crypto asset or demonstrate “high returns” to build trust.
3. Withdrawal of funds
When the inflow of new investments decreases, or the HoneyPot scheme begins to raise suspicion among users, scammers withdraw funds and disappear.
They delete websites, accounts, and any digital traces to avoid detection.
Despite variations of the HoneyPot scheme, the goal is always the same — to make the user buy a fraudulent asset.
Why do even experienced users fall for HoneyPot
Even experienced investors are not immune to HoneyPot.
Attackers may:
- pose as professional traders;
- run channels and grow an audience;
- use complex multi-stage fraud schemes.
The main goal of HoneyPot (bait) creators is to build trust. To achieve this, they use psychological triggers:
- FOMO (fear of missing out)* — within a HoneyPot (bait), users are shown rapid growth of a new cryptocurrency so they fear missing potential profit.
- Greed — promises of quick and easy earnings push victims into impulsive investments.
* FOMO (fear of missing out) is a behavioral cognitive effect in which an investor feels pressure due to the risk of missing potential profit. In the context of the crypto market, FOMO manifests in impulsive decisions to buy a crypto asset amid rapid growth or artificially created hype. It is actively used in fraudulent schemes, including HoneyPot (bait), to reduce critical thinking and accelerate decision-making.
How to identify and avoid HoneyPot (bait)
Checking the smart contract
Analyzing the smart contract code (self-executing agreement) can reveal suspicious functions — a key sign of fraud. For verification, blockchain explorers* such as Etherscan are used, as well as artificial intelligence tools.
* A blockchain explorer is a specialized analytical web tool that provides access to blockchain data. It allows real-time analysis of transactions, addresses, crypto assets, and smart contracts, including their source code and function calls. It is used for technical project audits, detecting anomalies (e.g., restrictions on the sale of cryptocurrency), and verifying transaction transparency. Examples: Etherscan, BscScan.
Additionally, projects can be checked through specialized services:
- Token Sniffer;
- RugDoc;
- De.Fi Scanner;
- HoneyPot checker;
- RugPull Detector;
- BSC Check;
- TokenGuard.
Consulting experts
To avoid a HoneyPot, beginners in cryptocurrency should seek help from experienced investors. There are communities where crypto users share useful information:
- Bitcointalk (a cryptocurrency forum);
- Reddit (a discussion-based social platform);
- specialized crypto communities and chats.
Experienced members of the crypto community can quickly identify signs of HoneyPot.
Independent analysis
If a user has basic experience, it is worth analyzing a suspicious project independently:
- Check for mentions in media, forums, and social networks;
- Evaluate the quality of the project’s content.
- Review the team’s accounts (for example, registration date);
- Analyze the website.
A reliable project usually includes:
- legal documentation;
- a privacy policy;
- information about the team.
The absence of this data is a typical sign of HoneyPot.
Monitoring security sources
It is useful to follow services that publish data on fraud, including HoneyPot schemes:
- CertiK;
- ScamAlert;
- Wu Blockchain;
- Crypto Scam Tracker.