Honeypot is by now a famous scam especially on BSC which in simple words is a token which you can buy but cannot sell.
Hundreds of scam tokens are created daily, without proper knowledge of Solidity programming language (the programming language BSC contract uses) it was quite difficult to tell which project is a scam. Luckily some people saw patterns in scam projects and created tools to make detection of lazy scammers easier.
It seems to check for couple of things
- Modified contract code.
- Top token holders.
- Liquidity token holders.
- Token owner / creator holdings.
This does not guarantee a project is scam proof but is a must tool for everyone to use before aping into a new hot project and since it's free, why not give it a try. Stay safe out there!