What Are Honey Pot Crypto Presales | How to Avoid the Honey Pot Crypto Trap in 2025

Author: Jawad Hussain – Crypto Analyst & Web3 Researcher | 9+ years tracking presales, IDOs, and token launches. Follow him on X (formerly known as Twitter) and LinkedIn.

The cryptocurrency world has always thrived on excitement, speculation, and the lure of being “early.” Few things capture this spirit more than presale offerings — those exclusive windows where investors can buy into tokens before they hit the open market. For many, presales seem like the holy grail: get in at the ground floor, watch the value multiply, and sell when the wider market finally catches up.

But in the shadows of these opportunities lurks a darker reality — the honey pot presale scam. This scheme is especially vicious because it preys on trust, ambition, and the natural human desire for outsized rewards. Investors can buy tokens, often in large amounts, but when they try to sell, they find themselves stuck. Their assets are locked inside a smart contract designed to drain them of value, leaving them powerless as developers walk away with the profits.

As MoonGems has tracked in earlier articles, the appeal of presales, mixed with the complexity of blockchain technology, makes honey pots uniquely effective. Most retail participants don’t read smart contracts line by line, nor do they have the time or expertise to analyze code. Instead, they rely on marketing, hype, and the credibility of community chatter. For scammers, this imbalance of knowledge becomes a weapon.

To understand how these traps work, it’s crucial to look at real-world examples. From Big Eyes Coin (BIG) to the notorious Squid Game Token (SQUID), and lesser-known cases like PoodleCoin, Trapdoor Tokens, and projects flagged by CertiK, the record shows how millions of dollars have been siphoned away through this insidious tactic. 

What Exactly Is a Honey Pot Crypto Presale?

The term “honey pot” originates from cybersecurity, where it refers to a decoy system built to lure hackers and study their behavior. In cryptocurrency, however, the meaning flips: instead of attracting malicious actors, the trap ensnares unsuspecting investors.

Here’s how a typical honey pot presale works:

1. The Setup: Developers launch a new token, complete with a website, social channels, and often an appealing narrative (a meme mascot, a promised utility, or even celebrity endorsements).
2. The Sale: Investors are invited to purchase tokens in advance of a public launch. The presale often includes enticing rewards like bonuses, discounts, or “exclusive” access codes.
3. The Trap: Hidden inside the token’s smart contract are functions that prevent selling. These could include blacklisting wallets, disabling sell functions entirely, or imposing taxes so high that selling becomes worthless.
4. The Outcome: Once enough buyers are trapped, the developers vanish, leaving the tokens unsellable and the investors with nothing.

Unlike traditional rug pulls, where developers pull liquidity from an exchange, honey pots exploit code mechanics. The tokens remain in investor wallets, but they are effectively useless because they can’t be sold or transferred.

Case Study 1: Big Eyes Coin (BIG) – The Cat That Snared Its Own Fans

When Big Eyes Coin first appeared, it seemed like the perfect blend of meme culture and crypto hype. Featuring an adorable wide-eyed cat mascot, it positioned itself as a community-driven token that promised charity donations, NFT integrations, and a roadmap packed with ambition.

The presale was a roaring success, reportedly raising millions of dollars from retail investors who were charmed by the branding and swayed by aggressive influencer campaigns. For a time, Big Eyes Coin looked like it might rival other meme sensations like Dogecoin or Shiba Inu.

But cracks soon appeared. Reports circulated that selling tokens was either restricted or subject to heavy penalties. Some investors claimed they couldn’t withdraw at all. Questions about transparency in token allocation and liquidity locking fueled concerns that Big Eyes Coin had been designed to operate like a honey pot.

While the project’s team denied outright fraud, the investor experience told another story: the combination of marketing-heavy hype and technical restrictions left many unable to recover their funds. Big Eyes Coin illustrates how even polished branding and wide visibility can conceal exploitative mechanics.

Case Study 2: Squid Game Token (SQUID) – Viral Fame, Viral Scam

No honey pot scam has ever been as spectacular — or as widely reported — as the Squid Game Token.

Launched in 2021, it claimed to bring the Netflix phenomenon into crypto, promising a play-to-earn game modeled after the hit TV series. The token exploded in popularity, with coverage from mainstream media outlets adding fuel to the fire.

In just days, the price of SQUID surged from pennies to over $2,800 per token. Some early buyers believed they were sitting on life-changing fortunes.

Then came the realization: they couldn’t sell. The smart contract included restrictions that blocked users from cashing out, making SQUID the textbook definition of a honey pot.

By the time the developers vanished, they had extracted more than $3 million. For many retail investors, SQUID was their first encounter with the brutal side of presale hype. It also became a lesson for the industry at large — even global headlines can’t protect buyers from malicious code.

Case Study 3: PoodleCoin – A Meme with a Hidden Bite

In the wake of Dogecoin’s success, hundreds of dog-themed tokens flooded the market. Among them was PoodleCoin, which initially presented itself as a playful meme project. With low entry costs and promises of rapid community growth, PoodleCoin managed to attract thousands of small investors.

What buyers didn’t realize was that PoodleCoin’s contract included crippling sell restrictions. Some wallets were able to sell only tiny fractions of their holdings, while others were blocked entirely. A few managed to offload tokens, but only after paying exorbitant transaction taxes.

The net effect was the same: investors’ money was stuck, and the developers pocketed the proceeds. PoodleCoin’s collapse reinforced the idea that scammers were getting smarter — mixing meme appeal with technical traps to ensnare retail enthusiasm.

Case Study 4: Trapdoor Tokens – When Warnings Go Unheeded

Not all honey pots hide in obscurity. Some have even been flagged by blockchain auditors like CertiK before investors piled in. These so-called Trapdoor Tokens contained functions allowing developers to blacklist sellers, alter fees at will, or disable transfers entirely.

Despite warnings, many investors ignored the risks, lured by promises of quick riches. The result was predictable: liquidity was trapped, developers vanished, and retail participants were left holding worthless tokens.

Trapdoor Tokens highlight a key issue: many investors do not read or understand audit reports, and scammers know it. Even when professional red flags are raised, the fear of missing out often outweighs caution.

Case Study 5: CertiK-Flagged Honey Pots – A Persistent Pattern

Security firm CertiK has identified hundreds of honey pot tokens across Ethereum, Binance Smart Chain, and Solana. Their audits reveal recurring tactics:

• Contracts that allow only developer wallets to sell.
• Code that blocks transfers under certain conditions.
• Adjustable functions enabling developers to change selling rules post-launch.

At any given time, CertiK has warned that over 200 active honey pot scams exist across major chains. And yet, investors continue to buy in — proof that presale mania often blinds people to obvious risks.

Why Honey Pot Presales Work So Well

Honey pot presales may seem like crude tricks on the surface—tokens that you can buy but can’t sell—but their success reveals something far more complex. These schemes don’t thrive simply because investors are “naïve.” They work because scammers understand how psychology, technology, and community dynamics combine to create the perfect storm.

At the center of this storm are three forces: FOMO, complexity, and community illusions. Each is powerful on its own. Together, they form an almost unbreakable net that captures unsuspecting buyers before they even realize what’s happening.

a) FOMO: The Investor’s Blind Spot

Fear of Missing Out, or FOMO, is not just a crypto buzzword; it’s a primal emotion. Humans have always been driven by the fear of being left behind, and scammers know how to weaponize it. In the context of presales, FOMO shows up when investors hear stories of 100x or 1000x gains made overnight by early buyers of tokens like Dogecoin, Shiba Inu, or even smaller meme coins that exploded from obscurity.

Honey pot presale creators exploit this urgency by creating a false sense of scarcity. They often announce that the presale has only a few hours left or that supply is limited to a small number of buyers. These tactics are reinforced with countdown timers, staged “sold-out” messages, and influencers urging followers to “ape in now before it’s too late.”

The result is predictable: people skip due diligence because they fear losing their chance. Instead of reading the smart contract or questioning the legitimacy of the team, they rush to buy. Once they realize the trap, it’s already too late. FOMO ensures that rational thinking is pushed aside in favor of quick, emotional decision-making—exactly what honey pot scams rely on.

b) Complexity: Hiding the Trap in Plain Sight

Even for seasoned investors, smart contracts are difficult to read. For newcomers, they are almost impenetrable walls of code filled with functions, conditions, and jargon. Honey pot scams exploit this asymmetry of knowledge.

The trap is often hidden in small lines of code—perhaps a transfer function that allows purchases but blocks sales, or a tax function that imposes a 99% fee on outgoing transactions. These manipulations aren’t invisible; they’re right there in the contract. But scammers count on the fact that most retail participants won’t, or can’t, analyze them.

Some honey pot projects even release “audits,” often purchased from little-known firms or generated automatically, to give an air of legitimacy. To the untrained eye, an audit badge looks reassuring, but in reality, it’s meaningless. The technical barrier is simply too high for most participants, leaving them reliant on trust—exactly where scammers want them.

In other words, honey pots thrive in the gap between what’s technically knowable and what’s practically understandable. Complexity doesn’t just conceal the scam; it discourages people from even trying to look deeper.

c) Community Illusions: Building Trust from Thin Air

If FOMO is the spark and complexity is the smoke, then community illusions are the mirrors that make the whole stage look convincing. Scammers know that people trust what appears popular. That’s why honey pot projects often launch with bustling Telegram groups, Discord servers, and Twitter threads filled with activity.

The secret? Most of it is fake. Bots inflate follower counts and spam “bullish” messages. Paid influencers lend credibility with videos that look authentic but are essentially advertisements. Fake testimonials are plastered across Reddit and YouTube, giving the illusion that “real” people are making real money.

To an outsider, the project looks alive, thriving, and supported by an enthusiastic base. And in crypto, perception often equals reality. Many buyers equate a noisy community with a successful project, forgetting that noise can be manufactured. By the time they realize the enthusiasm was staged, they’re already locked into the honey pot.

d) The Perfect Storm: Psychology Meets Technology

What makes honey pot presales especially dangerous is how these three forces reinforce one another. FOMO rushes people into decisions. Complexity ensures they can’t easily check what’s happening under the hood. Community illusions reassure them that everything is legitimate.

Together, these elements create a psychological and technical trap that’s extremely difficult to escape. Investors are not simply being reckless; they are being outmaneuvered by scammers who understand human behavior as well as they understand blockchain code.

And this is why honey pots succeed so consistently. They don’t rely on investor ignorance alone. They rely on a coordinated strategy that preys on emotions, exploits technical barriers, and manipulates perceptions of community and trust.

e) Not Investor Foolishness, but Tilted Odds

It’s important to stress that honey pots don’t work because investors are stupid. They work because the odds are deliberately tilted against them. When you combine the urgency of FOMO, the opacity of blockchain code, and the illusion of a vibrant community, even experienced traders can fall prey.

This is why honey pot presales continue to appear and why they claim new victims every cycle. The trap is designed not just to catch the inexperienced but to disarm anyone caught at the wrong moment.

How to Protect Yourself Against Honey Pots

The rise of honey pot crypto presales has made one thing clear: investors cannot rely on hype alone. These schemes thrive on psychology, complexity, and community illusions, but that doesn’t mean investors are defenseless. With a combination of awareness, diligence, and practical tools, it is possible to navigate the presale landscape more safely. Protection against honey pots requires not just one defensive tactic but a layered strategy. Let’s explore the most effective ways to shield yourself from these traps.

1. Smart Contract Analysis: The First Line of Defense

At the heart of every honey pot lies the smart contract—the coded rules that govern how tokens can be bought, sold, or transferred. Scammers exploit this by slipping in hidden functions that prevent selling or impose massive taxes on transactions. For the average investor, reading smart contracts line by line isn’t realistic. That’s why automated tools are invaluable.

Platforms like Honeypot.is and Token Sniffer are designed to scan contracts for common restrictions. They can quickly flag suspicious elements, such as transfer blocks or liquidity withdrawal loopholes. While these tools aren’t foolproof, they provide an essential first check before committing funds.

For instance, during the infamous Squid Game Token debacle, many investors could have spotted the honey pot restriction if they had run the contract through a scanner. Unfortunately, most skipped this step, blinded by hype. The lesson is simple: if a presale project refuses to make its contract publicly accessible, or if automated tools raise red flags, walk away.

2. Audit Verification: Trust, but Verify

A smart contract audit is like a health check for a crypto project. Independent auditing firms examine the code to ensure it functions as promised and isn’t hiding malicious traps. However, not all audits are created equal. Some shady projects present “audits” from little-known or automated services that mean very little. Others forge certificates outright.

To protect yourself, always verify whether a reputable firm has performed the audit. Established names such as CertiK, PeckShield, or Hacken have industry credibility and a track record of exposing vulnerabilities. Their audits are detailed and transparent, often highlighting not only critical risks but also medium- and low-level issues.

Before investing, check the auditor’s website directly. Most reputable firms list completed audits in their archives. If a project claims to be “audited” but doesn’t appear on the auditor’s official list, that’s a major red flag. In short: don’t take “audited” at face value—verify it yourself.

3. Liquidity Locks: Ensuring There’s No Rug Pull

One of the most common exit strategies for scammers is a liquidity drain. After raising funds in a presale, developers sometimes withdraw all liquidity from decentralized exchanges, leaving investors with worthless tokens they can’t trade. This maneuver, known as a rug pull, is devastating but preventable.

Legitimate projects lock their liquidity for a defined period on platforms like Unicrypt or PinkSale. When liquidity is locked, developers cannot access those funds, providing assurance that the project won’t disappear overnight.

Investors should always verify the liquidity lock themselves. Platforms usually provide a public link showing how much liquidity is locked and for how long. Be wary of locks set for very short durations; a one-week lock is little comfort when a project claims to be building for the long term. The stronger projects lock liquidity for six months, a year, or even longer.

4. Community Transparency: Separating Signal from Noise

A vibrant community can be the heartbeat of a legitimate project—or the illusion that keeps a honey pot alive. Fake Telegram groups, bot-filled Discord servers, and influencer endorsements create the appearance of popularity, but genuine communities look very different.

Transparency is the key. In authentic projects, community channels are full of open discussions, tough questions, and visible developer interaction. You’ll see investors debating concerns, moderators clarifying doubts, and developers addressing issues directly. By contrast, in honey pot communities, critical questions are often deleted, dissenters are banned, and only hype-filled messages are allowed.

Spend time in a project’s community before investing. Ask difficult questions: Who are the developers? Is there a roadmap with specific timelines? What happens to unsold presale tokens? How are funds allocated? Genuine projects won’t shy away from tough conversations.

5. Portfolio Strategy: Discipline Over Emotion

No matter how enticing a presale looks, the golden rule of crypto investing remains the same: never invest more than you can afford to lose. Honey pots succeed because investors sometimes gamble with funds they can’t risk. By maintaining discipline, you reduce both emotional pressure and financial damage if something goes wrong.

Diversification is equally important. Instead of putting all your funds into a single presale, spread your investments across multiple projects. This way, even if one turns out to be a honey pot, the impact on your portfolio is limited.

Think of presale investments as high-risk, high-reward plays. Treat them like venture capital bets: many will fail, but the few that succeed may more than compensate. This mindset helps prevent the desperation that scammers exploit.

6. Bringing It All Together: A Layered Defense

Protecting yourself from honey pots isn’t about one magic trick. It’s about combining multiple defenses. Run the contract through analysis tools, confirm audits with reputable firms, check liquidity locks, test the transparency of the community, and stick to disciplined portfolio strategies.

When these layers work together, your chances of falling victim to a honey pot decrease dramatically. Scammers rely on investors skipping steps, rushing decisions, or trusting appearances. By slowing down, questioning aggressively, and verifying every claim, you flip the odds in your favor.

MoonGems analysis suggests that the allure of presales will never go away. They promise early access, massive upside, and the thrill of discovering the next breakout coin. But alongside these opportunities lurk honey pots—carefully designed traps that prey on inexperience and emotion.

Awareness is the first shield, and discipline is the second. By adopting protective strategies—smart contract checks, audit verification, liquidity lock scrutiny, community analysis, and portfolio caution—investors can navigate the presale world with confidence.

In the fast-moving world of crypto, diligence is not optional; it’s survival. Those who slow down, question everything and double-check every claim are the ones who will not only avoid honey pots but also position themselves to catch the genuine opportunities before they explode.

The Ripple Effect on the Crypto Market

According to the research conducted by MoonGems, honey pot scams don’t just hurt individual investors; they damage the entire crypto ecosystem. Each high-profile case adds ammunition for regulators seeking tighter oversight and gives mainstream media another reason to paint crypto as a wild west of scams.

Legitimate projects then face an uphill battle for credibility. They must go above and beyond in transparency, security, and delivery to convince investors they’re trustworthy. In this way, honey pots create a chilling effect that stifles innovation.

Conclusion: Lessons from Big Eyes, Squid Game, and Beyond

The cases of Big Eyes Coin, Squid Game Token, PoodleCoin, Trapdoor Tokens, and CertiK-flagged scams reveal a sobering reality: honey pot presales are not anomalies. They are recurring traps engineered to exploit ambition and trust.

This investigation, part of the MoonGems series, reminds investors that while presales can promise explosive returns, they can also conceal devastating traps. MoonGems’ mission is to spotlight not just the gems, but also the fool’s gold that glitters alongside them. The lesson is not to abandon presales altogether, but to approach them with caution and discipline. Investors who balance curiosity with skepticism, and excitement with due diligence, stand the best chance of navigating this risky frontier.

In crypto, opportunity and danger walk hand in hand. To thrive, investors must learn to spot the difference — before it’s too late.

Frequently Asked Questions (FAQs)

Q1: What is a honey pot crypto presale?
A honey pot presale is a scam in which investors can buy tokens but cannot sell them. The restriction is coded into the smart contract, trapping funds while developers escape with profits.

Q2: How is a honey pot different from a rug pull?
In a rug pull, developers remove liquidity from an exchange, leaving tokens worthless. In a honey pot, tokens remain in investor wallets but cannot be sold due to coded restrictions.

Q3: Why do investors fall for honey pot presales?
They exploit fear of missing out (FOMO), the complexity of smart contracts, and staged community hype. Even experienced investors can be misled by these tactics.

Q4: What are some famous honey pot crypto scams?
Examples include Big Eyes Coin, Squid Game Token, PoodleCoin, Trapdoor Tokens, and numerous projects flagged by CertiK across Ethereum, BSC, and Solana.

Q5: How can I spot a honey pot presale?
Look for red flags such as unverifiable audits, lack of liquidity locks, overly hyped communities, and smart contracts that fail basic checks on tools like Honeypot.is or Token Sniffer.

Q6: Are all meme coins honey pots?
No. Many meme coins are legitimate but risky. However, because honey pots often hide behind meme branding and hype, caution is critical.

Q7: What’s the safest way to invest in presales?
Diversify, never invest more than you can afford to lose, confirm audits from reputable firms, verify liquidity locks, and actively test community transparency.

Glossary of Key Terms

• Honey Pot Presale – A scam where investors can buy tokens but cannot sell them due to restrictive smart contract coding.
• Rug Pull – A scam in which developers drain liquidity from a trading pool, rendering tokens worthless.
• Smart Contract – Self-executing code on a blockchain that governs token rules such as transfers and fees.
• FOMO (Fear of Missing Out) – Investor psychology that drives rushed, emotional decision-making in crypto markets.
• Liquidity Lock – Mechanism where funds in a trading pool are locked for a period, preventing developers from withdrawing them.
• Audit – A professional review of a token’s smart contract to identify vulnerabilities or malicious code.
• CertiK – A blockchain security firm that audits projects and flags vulnerabilities or scams.
• Trapdoor Token – A term for tokens coded with hidden functions that restrict or block selling.

Article Summary

This MoonGems feature explores honey pot crypto presales, deceptive schemes that trap investors by preventing token sales through smart contract restrictions. The article investigates infamous cases such as Big Eyes Coin, Squid Game Token, PoodleCoin, Trapdoor Tokens, and scams flagged by CertiK. It examines why these scams succeed, focusing on FOMO, technical complexity, and staged community hype. Practical strategies for investor protection are detailed, including contract scanning, audit verification, liquidity lock checks, community analysis, and disciplined portfolio allocation. The piece also reflects on the broader market impact of honey pots, noting how they erode trust and fuel regulatory scrutiny. Ultimately, it advises investors to balance curiosity with skepticism and diligence when navigating presales.

Disclaimer

This article is for educational and informational purposes only. It does not constitute financial, investment, or trading advice. Cryptocurrency investments carry high risk, including the potential loss of principal. Always conduct independent research, consult professional advisors where appropriate, and never invest more than you can afford to lose. References to specific projects are for illustrative purposes and do not imply endorsement.