Snowflake Floki, a knock-off of the Floki Inu meme coin, ends up being a honeypot scam that typically prevents buyers from selling tokens.
Snowflake Floki is a honeypot scam
According to blockchain security firm PeckShield, Snowflake Floki, a rip-off of the Floki Inu meme currency, is a honeypot scam.
#SCAM PeckShield has detected that @snowflakefloki is a #honeypot! Sell is disabled. People are constantly being trapped into buying. Stay *AWAY* from it!https://t.co/6sd6K4hm2x— PeckShieldAlert (@PeckShieldAlert) December 28, 2021
What is a honeypot scam?
A honeypot hoax, as the name implies, lures users into buying tokens while preventing them from selling them. Because all withdrawals are disconnected, the money of the buyers is basically stuck in the contract. Scammers usually ban all other wallets save their own.
This kind of con isn’t new. Honeypots have been a problem for Ethereum users for years. Because producing tokens on the Binance Smart Chain is substantially cheaper, such scams have become commonplace on the popular smart contract blockchain.
On Monday, Snowflake Floki debuted on PancakeSwap, a decentralized platform powered by the Binance Smart Chain, with some fans recognizing the red flag right away.
New way to spot honeypots
There’s now a simple way to recognize honeypots. However, it’s not foolproof. A honeypot detector replicates a purchase and sells transaction in order to verify whether or not a cryptocurrency project is a hoax.
In late October, a token inspired by Netflix’s blockbuster survival drama series Squid Game made news when its price rose by a stunning 40,000 percent in a matter of days.
However, there was a catch: due to an in-built “anti-dump feature” that played a significant part in raising the token price, buyers couldn’t sell it. The token, as expected, turned out to be a Ponzi scheme that duped customers of millions of dollars.
Many shady characters are also attempting to profit from respectable meme currencies like Floki Inu and Shiba Inu.