Honeypot Rug

Honeypot rug is basically a contract deployed by developers in the crypto space to lure investors into projects. In a honeypot rug, investors are able to buy tokens, but they are unable to sell or retrieve their funds once invested. This rug pull strategy aims to trap investors and leave them helpless, ultimately causing loss of investment. Locked Liquidity mechanism comes into play in this type of rug pull as well. When a developer launches a honeypot contract, the end goal is always removing the liquidity. Now if the liquidity is locked, the whole purpose of a honeypot contract becomes useless. If the liquidity automatically gets locked for 2 months (Mainnet), the dev cannot pull liquidity right away.

Interesting Fact - Scammy Devs are impatient. They cannot wait for more than an hour to pull the liquidity from a honeypot contract, let alone 2 months.

We know this will not completely stop the deployment of honeypot contracts, but rest assured, we are working on another feature that will potentially put an end to this type of rug, as well as contracts that are not renounced.