DeChat accidentally shared a ‘honeypot’ scam link in a token ad.
Dechat, a decentralized user interaction open source Web3 communication protocol, was mistakenly linked to the Honey Pot Pancake Swap Pool in its token launch announcement on February 26th.
“You clowns have linked your own token launch honeypot,” wrote anonymous on-chain researcher ZackXBT in a Feb. 26 X post. A Howpot crypto scam refers to a malicious contract with hidden traps that aims to lure users' investments before stealing their money.
You clowns have literally linked a honey pot to your own token launch. pic.twitter.com/ioUYRryMuR
— ZachXBT (@zachxbt) February 26, 2024
Following ZachXBT's revelation, DeChat deleted the original post and shared a new ad with an updated Pancake Swap link. The protocol's new utility token, DECHAT, was launched for trading on February 26. The coin is listed on KuCoin, Bybit, Gate.io, HTX, MEXC and PancakeSwap exchanges.
Cointelegraph contacted Dechat for comment.
The mistake drew public criticism. Anonymous X user Varun4243 said he lost money due to DeChat's wrong honey browser link. wrote:
“You guys posted the wrong contract address and link for Pancakewap!! I lost money because of it!! Will you compensate me for that?”
Honeypot crypto scams are a growing concern.
Honeypot scams are becoming more and more of a concern. According to Blockchain Security Certike, it can take about 30 minutes for a malicious actor to create a new honeypot contract.
In the year Squid Game Hanopot Token Scam November 2021 is one of the most famous examples of this scam. Developers of the SQUID honeypot token managed to steal an estimated $6.38 million worth of unreachable BNB (BNB), which was moved by cryptocurrency mixer Tornado Cash.
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The brand has seen significant revenues while riding on the hype generated by the popular Netflix series Squid Game. The scam projects have generated interest despite obvious red flags, such as holders not being able to sell their tokens, dubbed “innovative anti-dirty technology.”
Honeypot contracts are often intended to attract unsold user funds because the selling function of the contract is disabled. The malicious actor withdraws the investor's money after enough users fall for the scam.
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