Introduction
The rise of meme coins has brought excitement to the crypto space—along with sophisticated scams like Pi Xiu (honeypot) schemes. These traps manipulate token contracts to prevent buyers from selling while allowing creators to drain funds. This guide breaks down their tactics, red flags, and actionable strategies to protect your investments.
Pi Xiu Scam Tactics Explained
1. Malicious Burn Functions
Legitimate burns reduce token supply, but scam projects abuse this feature:
- Unauthorized burns: Creators call the burn function to destroy holders' tokens without consent.
- Example: Xiaopang token on Solana (6JCQ...LsSX) used burns to erase investor holdings.
2. Exploited Permit Functions
Some contracts bypass signature checks for pre-set addresses:
- Code vulnerability: The
permitfunction in BIGI DAO (Base) allowed developers to override approvals and steal funds. - Detection tip: Use AI tools to scan contract code for suspicious logic.
3. TON Chain Emerging Threats
Newer chains like TON attract scammers due to fewer detection tools. Case study:
JOPER token (EQDU...5Cdv) showed high-risk markers on OKX’s scanner, including:
- Admin-controlled transfer locks
- Unlimited minting capability
How to Avoid Pi Xiu Scams
1. Enable Risk Filters on Market Data
- Use platforms with built-in honeypot filters (e.g., DEX Screener’s "SAFU" tags).
- Limitation: No tool catches 100% of scams—cross-verify results.
2. Trade on Alert-Enabled Platforms
Select exchanges that:
- Block transactions for flagged tokens
- Show real-time warnings (e.g., "High tax rate detected")
3. Audit Token Contracts
Key red flags:
- Renounced contract? Fake renunciations hide upgradeable code.
- Trading pause function: Lets devs freeze sells abruptly.
- Dynamic taxes: Fees over 30% often signal manipulation.
4. Use Multiple Scanners
Combine insights from:
| Tool | Focus Area |
|-------|------------|
| Honeypot.is | ERC20 exploits |
| GoPlus | Multi-chain risks |
| OKX Web3 | TON/Solana checks |
FAQ
Q: Can a token become a Pi Xiu scam after launch?
A: Yes. Some devs wait until liquidity builds before activating malicious code.
Q: Are low-market-cap coins riskier?
A: Typically—they’re easier to manipulate. Stick to projects with audits.
Q: How do I recover funds from a scam?
A: Contact the platform immediately, but recovery is rare. Prevention is critical.
Key Takeaways
- Verify contracts with AI and scanners before trading.
- Stick to alert-enabled platforms like OKX for added protection.
- Diversify checks—no single tool is foolproof.
Stay vigilant: Meme coins offer fun, but scams exploit FOMO. Always DYOR.