Pump-and-Dump meets Honeypot Tokens: Detection and Analysis of Telegram Bait-and-Trap Schemes

An empirical analysis of 83 Telegram channels and 3,677 events across BNB Smart Chain and Ethereum indicates that decentralized exchange (DEX) pump-and-dump schemes operate fundamentally differently from centralized exchange (CEX) equivalents. Rather than executing standard market price manipulation, organizers deploy honeypot tokens embedded with smart contract restrictions that allow victims to purchase assets but prevent them from selling.

This research reveals a critical shift from market-based price manipulation to programmatic execution traps within decentralized financial ecosystems. Understanding this mechanism is vital for risk and oversight entities because standard market surveillance focused solely on trading volume or price volatility fails to identify code-enforced financial traps.

Investigation of 83 Telegram coordination channels identified 3,677 decentralized scheme events across BNB Smart Chain and Ethereum.

Forward consideration, not a verified fact.