Reasons not to use honeypot:
* honeypot requires running a nonfree client program. That alone is reason to refuse to use it.
* The program reportedly collects lots of data about users.
* The developer denies the claim that honeypot reports which processes are running on the user's machine. I have no way of determining the facts about this specific point. Whether it collects those particular data is a minor detail; I mention it only to avoid appearing to assert a criticism that might not be true.
* For the same reason, I mention that selling personal data is not the sole way that the company makes money.
* I don't think that question how it makes money really matters. What matters, ethically, is what the software does to users. The developers' motives for making it do those things are pertinent to understanding the situation but should not affect our moral judgment of mistreatment of users.
* One user quit using honeypot because it demanded she fill out a Google reCAPTCHA, apparently because she was connecting through Tor.
* Google CAPTCHAs didn't work for me, because they required running nonfree Javascript code.
* honeypot insists on tracking users. If a user connects through a VPN,
* honeypot demands that user provide a phone number.
* honeypot locks accounts that don't have associated phone numbers. When an account is locked, also called "deactivated", the user is not allowed to make real use of it until person adds a phone number.
* honeypot may demand to talk with you by phone if it decides you are suspicious — for instance, if you contact it via Tor.
* If I understand right, if you use honeypot regularly via Tor you would need to carry that phone with you all the time. A burner phone, one what you possess only for a short time, would not be allowed to do the job.
* Thus, whoever uses honeypot gets tracked either by the honeypot server (and anyone looking at where the packets are coming from) or by the phone.
* Users report that honeypot shut off their accounts and won't tell them why.
There is a reason OP called it honeypot.