Honeypot token in cryptocurrency is a type of token specifically designed to attract investors with the promise of quick gains. Honeypot contract is coded to allow users to buy the token but prevents them from selling it, effectively trapping their funds. These tokens exploit the decentralized nature of the blockchain, where customizable smart contracts govern the token's behavior, and transactions are irreversible. The token's name derives from the concept of a "honeypot," a trap designed to lure in unsuspecting targets with the promise of something sweet.
Honeypot tokens are frequently launched, taking advantage of the speculation in crypto market. Investors, impressed by the rapid growth of an asset, often find themselves unable to exit their position once they've bought the token. This results in significant financial losses for the investors and high profits for the creators of these tokens, who withdraw the funds from the honeypot smart contract.
The profitability of honeypot tokens has led to their rapid proliferation across various blockchains, especially those gaining popularity in the crypto space. Historically, Ethereum and Binance Smart Chain have been common platforms for launching honeypots. However, as newer blockchains become trendy, they also become prime targets for honeypot tokens.
In 2024, Solana became a leader in the memecoin space, making it a hotbed for new token launches, including solana honeypots. However, honeypot crypto creation methods for EVM compatible blockchains (Ethereum or BSC) wonβt work on Solana. This discrepancy is due to fundamental differences in how Solana's blockchain architecture and token contracts work compared to Ethereum.
The differences between Solana and EVM blockchains raise the question of how to adapt the way of honeypot token creation on different platforms. Why is the standard way to create a token is not applicable to Solana? How to make token honeypot on Solana? Today we will try to find out. First of all, it is necessary to understand the differences between tokens on Solana and tokens on Ethereum/BSC.
What is the difference between tokens on Solana and Ethereum/BSC?
Ethereum, Binance Smart Chain (BSC), Base, Arbirtum, Polygon, and similar platforms are EVM blockchains; they share a common architecture that allows smart contracts to be deployed in the same way (using the Remix IDE), and tokens in these blockchains are created using ERC-20 contracts.
The ERC-20 standard defines a set of functions and events that a token smart contract must implement. Having these functions makes it recognizable as a token asset for decentralized exchanges (Uniswap, PancakeSwap, SushiSwap, etc.) and makes their trading possible. At the same time, it is still possible to add code that changes the behavior of the token, as long as it does not break the work of the main functions.
This approach gives complete freedom for customization: it makes it possible to create a honeypot token on Ethereum and BSC, modifying (building on) the logic of the standard ERC-20 contract, as well as implement other functions without violating its original logic. Sounds great, but how are things on Solana?
In the Solana blockchain, the process of creating tokens is fundamentally different. Solana tokens are issued by the Token Program smart contract, developed by the Solana team. This program is deployed on the blockchain and it issues tokens according to the "template" embedded in it, which is similar to the ERC-20 standard in Ethereum. Thanks to this βclosedβ approach, the token in Solana is considered a smart contract issued by the Token Program. And since this program is already on the blockchain, it makes it impossible to interfere with the Solana token code.
This is the fundsmanetal difference that answers the question of why the approach to creating honeypot token differs on Solana and Ethereum blockchain:
When creating a token in Ethereum, you deploy a smart contract containing the basic functions according to the ERC-20 standard. Apart from that, it can contain any functionality, for example, a honeypot for blocking token sales.
When creating a token in Solana, you use the Token Program, which creates a Solana token using a template. No ability to implement anything into the smart contract code or modify it somehow. You get a standard token and the only difference from others will be its name, symbol and icon.
Given Solana's architecture, the question arises: Is it possible to create a honeypot token on Solana? The answer is nuanced. Because Solana tokens are created using a standardized, immutable program, developers lack the flexibility to change the behavior of the token in the same way they can on EVM compatible blockchains. It seems like the token program sets strict rules that make it impossible to create a honeypot crypto, but this is not entirely true.
Is a honeypot token possible on Solana blockchain?
The short answer is yes. Despite the limitations of its architecture, creating a honeypot token on Solana is entirely possible. The key is to understand the built-in features provided by the Solana token. Letβs take a look if they can be used to achieve making a honeypot token on Solana:
Transfer Feature
Similar to the ERC-20 standard, the transfer feature on Solana allows tokens to be moved from one wallet to another. This is a fundamental feature for any token to function in the Solana ecosystem, allowing for trading, transfer, and general circulation of tokens. It is a harmless feature that is not really helpful when creating a honeypot.
Minting Function
The minting function allows the token creator to issue additional tokens beyond the initial supply. While this function can be used to manipulate the market by increasing the token supply, it is not directly related to the honeypot tokens, which focuses on blocking sales.
Freezing Function
The freezing function is where things get interesting. This function allows the token creator to βblockβ an account, making the tokens on its balance useless. When an account is frozen, any token transactions associated with that account will fail. Token sales, transfers, and even purchases will be impossible. Tokens in a frozen account remain locked until the creator decides to unfreeze them.
The freezing function on Solana provides a mechanism that can be used to achieve a honeypot token effect. By freezing the accounts of token holders, the creator can prevent them from selling or transferring their tokens, trapping their funds in a manner similar to traditional honeypot tokens on Ethereum or BSC. Letβs try to see how it works in a live example.
Example of honeypot token on Solana
To show how a honeypot token can be created on the Solana blockchain, our team developed a demo coin
($CRYPTOKOKI)
that showcases the effect of account freezing. This live example allows you to see firsthand how the Freeze function can be used to prevent token holders from selling, in fact turning the token into a Solana honeypot.
You can view page of this demo honeypot token on Solana using this link :
After the purchase, the token creator used the Freeze function to block this account, preventing any further transactions with the token. The arrows in the transaction history of the test wallet points out both the purchase and the freezing actions. You can check it here:
This sequence of transactions actually turned the token into a Solana honeypot, since the holder of the frozen account can no longer sell or transfer the token. Any attempt to sell the token through the Raydium DEX, results in an error, meaning the user is stuck with the token in their account, and leaving their SOL in liquidity pool.
This example illustrates how the Freeze function can be used to create a honeypot token on Solana. By freezing an account, the token creator can trap funds in a way that prevents holders from selling their tokens, similar to honeypot token smart contracts on other blockchains.
For those interested in exploring more examples, you can find similar cases among meme coins on Solana. And if you are ready to get into creating a Solana honeypot token by yourself, you are welcome to next section!
How to create a Solana honeypot token?
As just discovered, freezing accounts is at the core of the creation of the honeypot token on Solana. But ecosystem of this platform lacks a standard solution or user-friendly interface for freezing buyers accounts. There are no official applications or platforms that provide a trusted way to do this.
To run a honeypot script, you will need the
Solana Honeypot Token
source code, which you can get on our website, NodeJS, VSCode and some SOL to cover the fees of services. Don't be afraid of the technical part - you won't need programming skills. We have prepared detailed instructions that come along the Solana honeypot script source code.
Setting up a Solana Honeypot Token using our solution is simple and requires minimal technical knowledge. You only need to edit a config file where you specify address of the token you want to make a honeypot, and addresses of privileged buyers who should not be blocked by the freeze function.
We have demonstrated the entire process of setting up and running a honeypot token live on our YouTube channel. You can follow the detailed instructions in the video to create your own honeypot token on Solana. Here is a link to the tutorial: Solana Honeypot π― Create a Honeypot Crypto on Solana
Once you've set up the Solana honeypot, run the script, and system will automatically freeze accounts of all current holders of your token. This action prevents them from selling or transferring their tokens. Your token is honeypot now!
To start creating a honeypot on Solana, get the script developed by CryptoKoki team. More information about the Solana honeypot script functions, how to get the source code and detailed setup instructions can be found on our website: https://cryptokoki.com/solana-honeypot-token.html
Now we'll answer some of the most common questions regarding Solana honeypot tokens, providing further insights into their creation and usage.
Is it profitable to create honeypot token on Solana?
As of August 2024, Solana has become a hotbed for honeypot tokens, driven by a surge of memecoins trading. The high meme coin drive have attracted a flood of investors looking to capitalize on the next big token, often without conducting thorough research. In this environment, launching a honeypot coin can be significantly more profitable than simply investing in one.
When you create a honeypot contract, you control the entire process. Unlike investing, where returns are uncertain and dependent on market movements, creating a honeypot token allows you to calculate profits more predictably.
The formula is straightforward:Profit = (Number of Investors Attracted) x (Amount Each Investor Contributes)
This mathematical simplicity, combined with the high demand for new tokens on Solana, makes it a profitable endeavor.
Many traders on Solana are driven by FOMO(Fear of Missing Out), leading them to jump into new tokens without conducting adequate research, violating the most important rule - DYOR(Do Your Own Research). This behavior increases the likelihood of falling into honeypot traps. As a result, the environment is perfect for creators of honeypot tokens to take advantage of this trend and attract substantial investments with minimal marketing effort.
The profitability of launching a honeypot token on Solana is underscored by several examples where such tokens have generated hundreds thousands of dollars for their creators. Tokens like
$EWOG
or
$TRUMP
are notable cases where the creators successfully attracted a large number of investors, only to freeze accounts and make a rug pull, locking in their profits while leaving investors with worthless tokens.
Creating a honeypot token on Solana is indeed profitable, especially in the current market climate. The combination of high demand for memecoins, the neglect of due diligence by many traders, and the ability to control the tokenβs lifecycle makes this a highly profitable strategy.
Where to list a Honeypot Token on Solana?
If you've created a honeypot token on Solana, the best platform to list it is Raydium, the most popular decentralized exchange (DEX) on the Solana blockchain. It's dominance in the Solana ecosystem makes it the go-to DEX for many traders, especially those interested in new and volatile tokens. Wide user base and integration with Solana trending/sniping bots ensure that your token will be visible to a large audience, increasing the chances of attracting buyers.
One of the key features of Raydium is its tolerance of the Freeze Authority function, which is essential for creating a honeypot token on Solana. Although the official Raydium interface may reject tokens with freeze authority unrevoked, there are known workarounds. These loopholes are outlined in the solution provided by our team, allowing you to list your honeypot token on Raydium without issues.
Raydium is also supported by most trending and sniping bots within the Solana ecosystem. This support simplifies the process of attracting buyers, as these bots can automatically promote and track your token, ensuring it gains visibility among FOMO-driven traders.
Is it possible to get out of Honeypot on Solana network?
To determine whether it's possible to quit a honeypot on the Solana blockchain, we need to go back to how Solana honeypot work. The core of this mechanism lies in the Freeze Authority function, which allows the creator of a token to freeze specific accounts, thereby preventing any transactions involving those accounts.
When your account, holding a honeypot token, is frozen, any transaction β whether it's selling, transferring, or trading the token, will fail. This action locks the token in your account, making it useless since you cannot get rid of it or realize its value.
The only way to quit (i.e. sell) a honeypot on Solana is to have your account unfrozen. This action can only be performed by an account with Freeze Authority, typically the creator of the honeypot token. Without this intervention, your funds remain locked.
If you find yourself trapped in a honeypot token on Solana, your only way is to contact the token creator and negotiate to have your account unfrozen. This could involve reaching an agreement or offering some form of incentive, but the outcome is entirely at the discretion of the token creator.
Quitting a honeypot token on Solana is challenging and depends on the goodwill or self-interest of the token creator. If your account is frozen, you have no power to unfreeze it yourself; only the creator of the token holds that authority. Therefore, the chance of quitting a honeypot is miserable unless the creator decides to grant you that freedom.
Will the honeypot owner be able to freeze other tokens in my wallet?
In Solana, when a token creator freezes an account, the freezing action is limited to that specific token. Thatβs how Solana's token architecture is designed. The freezing capability only applies within the context of the token created by the honeypot owner.
The creators of the honeypot token can only freeze the token they issued. They do not have any authority or access to freeze or affect other tokens, coins, or assets in your wallet. Your other holdings on the Solana blockchain remain unaffected by the actions of the honeypot token creator.
