# Crypto World Slang｜What is a "Honeypot"?

Have you heard of the "honeypot"? This is one of the most ruthless scams in the crypto world.

**The origin of the name is quite interesting**—the貔貅 in ancient Chinese legends only eats but never excretes, symbolizing income without expenditure. Scammers use this metaphor to refer to those coins that can be bought but never sold.

**How is it done?** The whitelist addresses of the smart contract are privately controlled by the developers, and the transfer function is only open to specific addresses. Ordinary users default to not having selling permissions—your money is like it has entered the honeypot's belly, and it can't come out at all.

**The trick is like this**:
- The coin price is artificially inflated, and FOMO sentiment is at an all-time high.
- Retail investors rush in to buy
- Developers and early participants cash out and run away
- Later people are permanently locked.

In simple terms: this is an upgraded version of a rug pull, but with stronger concealment. Even if you look at the code, it's hard to detect without auditing experience.

**Key Point**: Stay away from any projects that claim "community autonomy" or "decentralization" but have restricted transfer functions. Be cautious with meme coins; encountering a honeypot is tantamount to seeking death.