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Crypto Hippies Honeypot

Publish date: Nov 8, 2021
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Crypto Hippies Honeypot

Just when you thought you were about to make some decent money at launch and was about to sell for a profit, you realized that you could not sell (Transaction Failed). What happened?!

In the back of your mind, you thought:

the contract was audited by SolidProof. It should be fine, right?"

PinkSale list for Crypto Hippies. Audit tag links to Solid Proof

Wrong.

What happened?

  • Crypto Hippies launched their tokens on PinkSale at 03:59:20 PM +UTC
  • At 04:00:14 PM +UTC, the owner set the max sell transaction amount to 0.
  • At 05:47:45 PM +UTC, the owner sold their tokens.

In a span of one minute, the owner turned the project into a honeypot. Resulting in this chart below that rugged after 1.5 hours.

Honeypot. The chart keeps going up and create a fear of missing out (FOMO) effect that caused people to buy without knowing it was a honeypot.

The chart initially created the FOMO effect that caused people to continue to buy the tokens without knowing their funds are trapped.

At the end, the scammers drained about 580 BNB which is about $377,000 from the liquidity pool and the fund from the presale.

It’s worth noting that Solid Proof audit did comment on that owners can lock users fund.

Owner can lock user’s fund

However, I think Solid Proof can do better by stating the setMaxSellTransaction as critical or high issue, so that the investors know about the potential honeypot risk.

Learnings

  • Just because there’s an audit tag does not mean that the contract is safe.
  • The owner should never be able to set max sell to 0. There are other ways to prevent anti-dump, but that’s another day’s topic.

Disclaimer: Not financial advice. Do your own research.