Beware of This Altcoin: Honeypot Scam Hidden!

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Altcoin Snowflake Floki, a clone of popular meme coin Floki Inu, is a “honeypot” scam, according to a warning issued by blockchain security firm PeckShield.

Warning to this altcoin project from the security firm

PeckShield has issued a warning noting that Snowflake Floki exhibits an example of fraud. A honeypot scam forces users to buy while disabling the ability to sell tokens. Buyers’ money is effectively stuck in the contract as all withdrawals are disconnected. Typically, scammers blacklist all other wallets except their own. This type of scam is not new. Ethereum users have been dealing with honeypot for years. Such scams have also become a common occurrence on the popular smart contract blockchain, as Binance Smart Chain is cheaper to issue tokens.

Snowflake Floki launched on PancakeSwap, a decentralized platform powered by Binance Smart Chain, on Monday, and some followers instantly noticed the red flag. While not failing, there is now an easy way to detect honeypots. A honeypot detector simulates the trading process to determine whether a particular cryptocurrency project is a scam.

A similar scam took place in late October. A token inspired by Netflix’s hit survival drama series Squid Game made headlines in the mainstream media after its price skyrocketed in a short time. But there was one problem: Buyers were unable to sell it because of the built-in “antidumping mechanism” that played a key role in inflating the token price. Scammers keep trying to take advantage of current events or meme coins.