Introduction
Some tokens purchased on a decentralized exchange (DEX) can't be sold, swapped, or transferred after purchase. These tokens still exist onchain in the wallet but are effectively unusable. This article explains why this happens and what steps to take.
What trapped tokens are
Trapped tokens are crypto assets that remain visible in a wallet but can't be sold, swapped, or transferred. The tokens exist onchain; however, restrictions in the token's smart contract or a lack of market liquidity make them unusable.
Why trapped tokens happen
Trapped tokens typically result from one of the following causes:
Honeypot scams: The token's smart contract contains hidden code that allows buying but blocks selling.
Insufficient liquidity: There aren't enough buyers or liquidity on the DEX to execute a sell, so swaps fail.
Malicious contract permissions: Features like transfer hooks, permanent delegates, or hidden fees restrict or penalize transfers.
What Coinbase can and can't do
DEX tokens are permissionless and aren't reviewed or vetted by Coinbase. Coinbase doesn't control a token's smart contract or its market liquidity.
Coinbase may flag or hide tokens identified as malicious or spam, but the tokens remain onchain. In most cases, recovery of funds isn't possible.
Reduce risk before buying tokens
Check the contract address on a block explorer, such as Etherscan or Basescan, before buying.
Review audit information, holder distribution, and liquidity depth shown on the token detail page.
Use third-party tools, such as Token Sniffer, Honeypot Detector, or DexTools, to research tokens.
Be cautious with newly created tokens or tokens with very few holders.
Consider swapping a small amount first to confirm the token can be sold before investing more.
Pay attention to risk warnings displayed in the app during the trading flow.
If a trapped token is already in the wallet
Don't interact with suspicious URLs or links embedded in token names.
Hide or report the token in wallet settings.
Coinbase Support can't force a sell or reverse onchain transactions.