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😮 Hello! You often see words like honeypot or rug pull. But many do not understand what it is and why.
Today we’ll talk about some of the most common fraud schemes in crypto – honeypot and ragpull.😧 The safety of your funds depends on your education.

🐝 Honeypot

Honeypot is a scam designed to lure degen cryptans by offering them crazy growth rates, but in the end you will always lose your funds.

How it works?

⚡️ Attracting victims: Fraudsters create a token or project that promises high% token growth or gigantic staking%, etc.

⚡️ Tricky Smart Contract: The smart contract contains code that allows fraudsters to control transactions. For example, users can buy tokens, but cannot sell them. This is the very base.

⚡️ Withholding Funds: When users try to withdraw their funds, they find that it is not possible.

⚡️ At the end, developers add their wallets to WL for sale and sell the token, or withdraw your tokens from staking for themselves.

Approximate signs of honeypot:

🚫 Smart contract with closed source code. Or open, but you won’t read it.

🚫 Very high promised income.

🚫 Limited withdrawal options.

🚫 Quite often the command is anonymous.

🚫 New Twitter with boost and aggressive marketing

How to Avoid Honeypot❓

⚡️ Always check the smart contract source code. Example - de.fi/scanner

⚡️ Research the project and the team behind it.

⚡️ Avoid projects that promise too high returns.

Rug Pull🤨

Ragpull is a classic scheme in which the token developers take all the liquidity from the project and disappear with the investors’ money. As I remember, this is one of the fastest ways for scammers to make money.

How it works?

⚡️ Developers create a new token and attract money from investors, promising high incomes and prospects.

⚡️ Investors invest money in the project, which increases the liquidity of the token.

⚡️ When the goal is achieved, the developers withdraw all liquidity from the project, leaving investors with useless candy wrappers.

⚡️ The developers left with your stables, and you were left with a candy wrapper.

Examples of the ragpull trait:

🚫 Anonymous developers or a team with no reputation. Fresh accounts on social networks.

🚫 Very aggressive marketing. As an example, the latest scams with the ZRO and Monad tokens, all examples are in the chat.

🚫 Limited liquidity controlled by a small number of addresses.

How to avoid ragpull?

📌 Do not buy tokens that are posted by leftist people on Twitter and other platforms.

📌 Be careful with projects that offer too high returns in a short period of time.

📌 Monitor the distribution of tokens and the liquidity of the project.

🚫 Even if you follow a link from your favorite blogger, ALWAYS double-check the contract with official sources such as dropstab/coingeeko/coinmarketcap.

😭 Conclusion

There is a lot of scam in crypto. More than anywhere else. This is why you need to be careful when performing transactions outside centralized sites.🍎 Do not click on purchase links from NFTs that are sent to you. Always check bloggers’ links, because even million-dollar channels will scam people.