A 100% sell tax on a token means that if someone tries to sell the token, 100% of the sale amount is taken as a fee, leaving the seller with zero proceeds from the transaction.
Implications of a 100% Sell Tax:
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Prevents Selling – Effectively makes the token unsellable on the market.
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Traps Liquidity – Investors cannot cash out, making the token illiquid.
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Common in Scams or Honeypots – Some fraudulent projects use this to prevent investors from selling while the developers drain liquidity.
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Possible Legitimate Use (Rare) – In some cases, projects may temporarily impose extreme sell taxes to prevent dumping during early phases, but this is uncommon.
What Happens When You Try to Sell?
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You pay the transaction fee (gas) but receive nothing in return.
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The taxed amount may go to:
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A burn address (destroying the tokens).
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A developer-controlled wallet (in malicious cases).
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A liquidity pool (rarely, if intended to stabilize price).
Always Check Tokenomics Before Investing!
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Look for sell tax in the contract (common in BSC/ETH tokens).
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Use tools like Token Sniffer, RugDoc, or DexTools to detect honeypots.
