Honeypot Tokens Top 98,000 Scam Contracts, Data Shows

Honeypot contracts account for 98,442 scam tokens, more than any other exploit type, according to blockchain security data. Hidden mint functions follow with 60,985 cases, and fake ownership renunciations appear in 48,974 tokens. The three categories together cover the majority of detected scam tokens, the data shows.

A honeypot lets investors buy but prevents or restricts selling, trapping funds once enough liquidity enters. Hidden mint functions allow developers to inflate supply after launch, diluting existing holders. Fake ownership renunciations give the appearance of decentralization while developers retain control through upgradeable contracts or unverified source code.

Typical rug pulls unfold within 48 to 72 hours, security researchers said. The process starts with locked liquidity and renounced contracts to build trust. Social media buzz and influencer promotion attract fresh capital. Once the developer wallet dumps or withdraws the pool, the token's value collapses.

Wallet concentration is a consistent warning signal. On-chain data shows that projects where the top five holders control more than 30% of the supply face elevated manipulation risk, analysts said. That risk grows when developer allocations lack vesting or liquidity locks expire soon after launch.