The most common cause is a warning label on the token. Open the token page in the app. If there is a warning label, tap the info icon or the dropdown to reveal the full warning information. Read the warning thoroughly. If you accept, tap "I understand." Once acknowledged, the buy or sell button will be enabled.
If the sell fails because the position is too small, the minimum sell in the app is 2 USDC on most networks and 5 USDC on Ethereum, and when network fees are high a sell a little above that can still be too small to route. The app shows you when a position is below the minimum.
If you think a warning label on a token is wrong, send us the contract address and the chain and we'll get it reviewed. Labels can be corrected where the underlying classification is wrong, and they update as a token's on-chain conditions change.
If you've acknowledged the warning and the sell still fails, read the section on contract restrictions below.
To reduce the risk of encountering tokens that cannot be traded:
Trade Verified Tokens: Stick to verified coins and tokens within trusted platforms.
Check Credibility: Research the token's project, team, and community.
Verify Liquidity and Volume: Ensure the token has sufficient liquidity and trading activity before purchasing.
Warning labels are placed by fomo's automated safety systems based on on-chain characteristics of the token. Acknowledging the warning does not remove the risk. It confirms you have seen it and want to proceed.
Some tokens have restrictions set by the token creator that are written directly into the smart contract. These restrictions exist on the blockchain itself and no platform, including fomo, can override them. Honeypot tokens are a specific example of such restrictions. These malicious tokens have smart contracts that prevent users from selling the token after purchase, effectively trapping funds permanently. Once funds are trapped in a honeypot token, they are irretrievable, and neither fomo nor external tools can recover them. This is why researching a token before purchasing is important.
Before trading, use a token scanner to verify a token's contract. Copy the token's contract address and paste it into multiple scanners to cross-check results. Avoid trading if any scanner flags the token as high risk. Honeypot tokens are a key reason to use these tools, as they are designed to exploit users by creating the illusion of a legitimate investment while permanently trapping funds.
fomo's warning labels catch many of these, but not every risky contract gets flagged instantly. Always do your own research before trading. The app flags tokens with unverified contracts at the bottom of the token page, warning users to exercise caution and avoid interacting with flagged tokens. By understanding these warnings and limitations, users can make more informed decisions and reduce the risk of falling victim to scams like honeypot tokens.