SecurityBeginner

Token Safety Checks: Honeypots, Sell Taxes and Scam Tokens

How honeypot tokens trap buyers, what a hidden sell tax costs you, and the checks ChainBridge runs before a swap to block tokens you could never sell.

ChainBridge ResearchUpdated 5 min read

On this page5 sections

Key takeaways

  • A honeypot lets you buy but never sell; a hidden sell tax takes a cut every time you exit.
  • ChainBridge checks both tokens of a swap with GoPlus before you sign and blocks honeypots, unsellable tokens and sell taxes above 10%.
  • Smaller taxes and risky owner powers raise a caution that you must acknowledge before swapping.
  • The check fails open: if it cannot run, you are told, not blocked, so verify unfamiliar tokens yourself.
  • No automated check catches a team that drains liquidity or a contract that changes after you buy.

How scam tokens trap buyers

Anyone can deploy a token and add a liquidity pool. Most scam tokens look normal on a chart and swap normally when you buy. The trap is in the contract code, and it springs when you try to leave.

Honeypot

The contract allows buys but rejects sells from anyone except the owner. The price chart only goes up, because nobody can sell. Your tokens are worthless the moment you buy.

Hidden sell tax

Every sell sends a share of the tokens to the owner. A 30% sell tax means that $1,000 of tokens returns about $700. Some contracts let the owner raise the tax after launch, up to 100%.

Owner controls

Functions that let the owner mint new supply, pause transfers, blacklist your address or edit balances. Legitimate tokens sometimes have them, but they can turn any token into a trap overnight.

Counterfeits

A token named USDC or a popular meme coin, at a different contract address. It trades in its own pool, usually with little liquidity, and is worth nothing outside it.

What ChainBridge checks

ChainBridge queries the GoPlus token security API for both tokens of a swap. GoPlus analyses the contract and reports flags; ChainBridge turns them into one of four verdicts.

Token safety verdicts and their effect on the swap
VerdictRaised byEffect
DangerHoneypot; holders cannot sell their full balance; sell tax above 10% (including 100%)Swap blocked: the button reads “Swap blocked: unsafe token”
CautionAny sell tax up to 10%; any buy tax; owner powers such as minting, pausing transfers, blacklisting, changing balances or the tax; unverified or upgradeable contract; hidden owner; creator linked to past honeypots; flagged as counterfeit or airdrop scamYou must tick “I understand the risks and want to swap this token” before the swap is enabled
UncheckedThe check failed or the security provider has no data for this tokenNot blocked; a note asks you to verify the contract yourself
No risksNo flag raised, or the token is on ChainBridge’s curated listNothing shown; the swap proceeds normally

Two refinements keep the check useful:

  • Curated tokens skip the call. Native coins and the tokens in ChainBridge's built-in lists are known contracts and are treated as safe without an API call.
  • Expected admin powers are not flagged. Well-known tokens such as major stablecoins can be paused or blacklisted by their issuer. When GoPlus marks a token as trusted, only its taxes are reported, not these permissions.

A second, local check looks for impersonation: a token whose symbol belongs to a known token but whose address does not match, look-alike Unicode characters in the name or symbol, names containing links or airdrop claims, and addresses on a scam blacklist. Any of these shows a “Suspicious token detected” warning and disables the swap button.

Where the checks run

  • When you import a token. Pasting a contract address in the token selector shows “Checking token safety…”, then “No risks found”, “Use caution” or “Dangerous token” with the reasons, before you add it.
  • In the token list. Tokens you imported carry a small badge: No risks, Caution, Danger or Unchecked. Hover it to read the reasons.
  • On the review screen. Both tokens are checked again. The swap button waits for the result (“Checking token safety…”), then blocks, asks for acknowledgement or proceeds.

The review screen then simulates the real transaction. That catches a different class of problem: a swap that would revert right now, for example because a transfer tax exceeds your slippage tolerance. See transaction simulation.

What the checks cannot catch

  • Liquidity pulls. A team can remove its liquidity and leave holders with a token nobody can buy. The contract stays “clean” throughout.
  • Later changes. An upgradeable contract can be swapped for a malicious one after you buy, and an owner can raise a modifiable tax. These powers raise a caution, but the abuse happens later.
  • Brand-new tokens. A token deployed minutes ago may have no security data yet. It shows as Unchecked, not as dangerous.
  • Outages. If the security provider is unreachable or rate limited, the verdict is “Safety check unavailable”. ChainBridge does not block on missing data, so the decision is yours.
  • Insider selling. A large holder dumping on the market is legal for the contract and invisible to the check.

A manual checklist before you buy

For any token outside the built-in lists, take five minutes before the first swap.

  1. Get the address from the source

    Copy the contract address from the project's official site or documentation, not from a chat, reply or search ad. Compare the full address, not the first and last characters.

  2. Open it on the block explorer

    Check that the source code is verified, when it was deployed and who owns it. Ownership renounced to the zero address removes most owner powers. See how to verify smart contracts.

  3. Look at holders and liquidity

    A few wallets holding most of the supply, or a pool with very little liquidity, means a few people can crash the price. Locked liquidity is better than liquidity the team can withdraw.

  4. Read the ChainBridge verdict

    Import the token and read every reason listed. A caution you do not understand is a reason to stop, not to tick the box.

  5. Test with a small amount

    Buy a small amount, then sell part of it. If the sell fails or returns far less than expected, you have lost little and learned a lot.

For the social side of scams, such as fake airdrops, impersonated teams and pressure tactics, read DeFi scam red flags.

Swap with token checks built in

Imported tokens are screened on import and again on the review screen, before anything is signed.

Open the swap