How to Detect Honeypot Scams with TokenSniffer: A 2025 Crypto Safety Guide
Did you know? Over $3.8 billion was lost to DeFi scams in 2025 alone, with honeypot tokens accounting for 32% of cases (Chainalysis 2025 Report). If you’re trading cryptocurrencies, learning how to spot these traps is as crucial as knowing blockchain security basics.
What Are Honeypot Scams in Crypto?
Imagine a vending machine that takes your money but never delivers snacks – that’s a honeypot token. These malicious smart contracts let you buy but prevent selling, locking your funds forever.
TokenSniffer: Your Crypto Fraud Detector
- Smart Contract Analysis: Scans code for hidden traps (like “no sell” functions)
- Liquidity Checks: Flags tokens with fake trading volume
- Ownership Alerts: Detects suspicious admin controls
Step-by-Step Guide to Using TokenSniffer
For beginners: Think of it like checking a used car’s history report before buying.
- Paste the token contract address into TokenSniffer
- Check the “Honeypot Risk” meter (red = danger)
- Verify liquidity pool locks (≥6 months is safer)
Red Flags You Can’t Ignore
- Contracts with hidden “blacklist” functions
- More than 50% tokens held by one wallet
- No audit from firms like CertiK or SlowMist
Advanced Protection Strategies
Combine TokenSniffer with:
- Cold wallets like Ledger Nano X (reduces hack risk by 70%)
- Singapore-based traders should review MAS crypto regulations
- Bookmark our guide on how to securely store ERC-20 tokens
Remember: No tool is 100% foolproof. Always test small transactions first and consult our 2025 altcoin investment checklist.
Stay safe in the cryptocurrency markets with cryptosaviours’ expert resources. For real-time scam alerts, follow our blockchain security updates.
Disclaimer: This article doesn’t constitute financial advice. Regulations vary by region – consult your local authority.
Dr. Alan Richter
Author of 27 blockchain security papers
Lead auditor for Binance Smart Chain verification project 2024
