A honeypot is a system set up to detect, supplement, or control unauthorized actions. In the context of computer security, a honeypot is a system set up to detect and supplement unauthorized actions, such as penetration of a network or computer system.
Meanwhile, Honeypot in crypto is a smart contract created as a virtual bait or trap that aims to trick hacker attacks that may occur in the crypto world.
Honeypot in the crypto context is a fraud scheme designed by developers to create scam tokens that can only be bought but cannot be sold. The target of honeypot fraud is novice crypto investors who do not recognize the ins and outs of the crypto world, especially DeFi. The characteristics of the honeypot token include:
- Chart filled with green candlesticks
- Developer's background and activities are unclear
- Can only be purchased on Decentralized Exchange (DEX) platforms such as Pancakeswap, QuickSwap, UniSwap, etc.