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Author: Admin | 2025-04-28
The cryptocurrency sector is truly fascinating; it leverages one of the most innovative technologies of the 21st century and has created a global payment and investment ecosystem that anyone can tap into. Despite all of this, it is also plagued with a number of speed bumps that crypto users have to navigate.One of these is scams and boy, does the crypto industry have many of them. There are phishing scams that try to con users out of their passwords and private keys, crypto jacking that tries to steal computing power to mine tokens, and much more.One of the newer and perhaps more exciting crypto scams is the honeypot scam. While the honeypot scam has the same goals as all the others (stealing crypto), it doesn’t work the same way. Simply put, the honeypot scam is one that needs the victim to be a potential scammer themselves.What is the Honeypot Scam?Every crypto scam has the medium through which it is facilitated. Phishing scams try to lure you in by pretending to be your wallet provider, crypto exchange, or some other legitimate organization to get your login details.Crypto jackers tend to hide their bots in fake programs that are published on the internet for unsuspecting victims. Honeypot scams are very unique in that they are perpetuated through Ethereum smart contracts.Besides being the foundation for the second-biggest cryptocurrency in the world, Ethereum is also used for the creation of smart contracts.Smart contracts are blockchain-based programs that carry out specific actions when certain conditions (which are specified in the code) are met. So, what does this have to do with honeypot scams?Well, if there is a vulnerability or loophole that can be exploited in a smart contract, many people will try to take advantage of them. This is where the honeypot scam comes in.How this works is that the scammer creates a smart contract that allows a user to extract the Ethereum tokens stored in them. So, imagine you come across a smart contract. Not just any smart contract, though. This one has a flaw in its design that you can exploit to extract
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