If you're experiencing difficulties swapping certain tokens, you may be dealing with tokens that are unsellable.
Tokens flagged as unsellable are often referred to as "honeypots." These tokens are designed to prevent users from selling them, often due to malicious code added by the token creators. The token’s contract may contain various conditions such as a high sell fee or whitelist or blacklist functions.
After the victim has purchased the scam token the scammers remove all the liquidity in the pool. This is known as a rug pull.
If successful, the scammers take the ETH in the liquidity pool and the victim is stuck holding a token that has no value and cannot be sold.
How to Identify Unsellable Tokens
Step 1: Check Token Status
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Look for error messages: The error “Transaction is expected to fail” is very common with unsellable tokens. This error is meant to help you avoid paying network costs for transactions that will fail.
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Look for token warnings: If you receive token warnings such as "100% sell fee", the token is likely unsellable.
- Use additional tools to learn about the specific token: Tools like Token Sniffer and Honeypot Detector can provide insights into the token's ability to be sold.
Note: the information on third-party sites may not be 100% accurate. Uniswap Labs is not affiliated with Token Sniffer or Honeypot Detector.
Step 2: Analyze Transaction History
- Failed Transactions: If you have repeatedly attempted to swap the token without success, and have incurred network costs without completing the transaction, this is a strong sign of an unsellable token.
Step 3: Review Community Feedback
- User Reports: Check forums or community discussions for reports of similar issues with the token. Multiple reports of other users not being able to sell the token can confirm the token's status.
What to Do If Your Token Is Unsellable
If you have confirmed that your token is unsellable, here are some steps you can take:
Step 1: Avoid Further Transactions
- Stop Attempts to Swap: Continuing to attempt swaps will only result in more network costs without success. Avoid further transactions with the token.
Step 2: Secure Your Wallet
- Check for Unauthorized Access: Ensure your wallet has not been compromised. If you suspect unauthorized transactions, consider creating a new wallet and transferring your remaining assets.
Step 3: Report the Token
The following links may help you report crypto scams:
- Chainabuse.com
- Report fraud to the FTC
- File a complaint to IC3
- Report fraud to your local cyber crime authorities
Understanding the Limitations
It's important to understand that decentralized platforms like Uniswap do not control or restrict the creation of tokens. The responsibility lies with users to research and verify the legitimacy of tokens before purchasing.
Key Points to Remember
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Decentralized Nature: Uniswap is a permissionless platform, meaning anyone can create and list tokens without oversight.
- User Responsibility: Always conduct thorough research before investing in new tokens. Look for red flags such as lack of liquidity, high sell fees, or reports of scams.
While dealing with unsellable tokens can be frustrating, understanding the nature of these tokens and taking preventive measures can help protect your assets. Always stay informed and exercise caution when trading on decentralized platforms.