Snowflake Floki, a rip-off of the Floki Inu meme coin, is a honeypot scam, according to blockchain security firm PeckShield.
“#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
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.
There’s now a simple way to recognize honeypots, however it’s not foolproof. In order to verify whether or not a cryptocurrency project is a hoax, a honeypot detector replicates a purchase and sell transaction.
In late October, a token inspired by Netflix’s hit survival drama series Squid Game made headlines when its price skyrocketed by a whopping 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.
Unscrupulous actors are also attempting to profit from real meme coins like Floki Inu and Shiba Inu.
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