Creating An Erc20 Honeypot Token For Educational Purpose

To create an ERC-20 honeypot token, code a smart contract on the Ethereum blockchain. This contract tricks investors into buying the token. Later, it blocks them from selling it. This seems malicious. But, knowing how these tokens work helps developers, investors, and fans spot scams. ERC-20 is the standard for tokens on Ethereum. A honeypot token follows this standard. But, it has rules that prevent selling the token after buy. Developers use Solidity to create these tokens. It defines functions for transferring tokens and checking balances. In a honeypot token, the contract adds rules that stop users from selling the token.

How Erc20 Honeypot Tokens Work And The Risks

Honeypot tokens, especially ERC-20 tokens, are scams. They lure users in, then lock their funds. Buyers can't sell or transfer these tokens. These tokens have restrictions, making them seem legitimate at first. But, they trap investors who are unaware of the selling limitation. ERC-20 is the main standard for tokens on Ethereum. Most allow free trading. But a honeypot token blocks selling after buy. It tweaks the smart contract's _transfer function. This change limits transfers to specific conditions, often to the owner. Here's how the scam plays out: An investor buys a token, hoping to sell it later. But the smart contract blocks this. Often, no liquidity exists for the token, meaning traders can’t trade it. Honeypot tokens are common on decentralized exchanges (DEXs) like Uniswap. These platforms have loose listing rules. Scammers often pitch these tokens as "high-return investments." Such scams can catch new investors with little oversight. To avoid these

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