diff --git a/x/tokenfactory/keeper/before_send_test.go b/x/tokenfactory/keeper/before_send_test.go
new file mode 100644
index 00000000000..ca018cba2f3
--- /dev/null
+++ b/x/tokenfactory/keeper/before_send_test.go
@@ -0,0 +1,125 @@
+package keeper_test
+
+import (
+	"fmt"
+	"os"
+
+	sdk "github.com/cosmos/cosmos-sdk/types"
+
+	"github.com/osmosis-labs/osmosis/v15/x/tokenfactory/types"
+
+	banktypes "github.com/cosmos/cosmos-sdk/x/bank/types"
+)
+
+type SendMsgTestCase struct {
+	desc       string
+	msg        func(denom string) *banktypes.MsgSend
+	expectPass bool
+}
+
+func (suite *KeeperTestSuite) TestBeforeSendHook() {
+	for _, tc := range []struct {
+		desc     string
+		wasmFile string
+		sendMsgs []SendMsgTestCase
+	}{
+		{
+			desc:     "should not allow sending 100 amount of *any* denom",
+			wasmFile: "./testdata/no100.wasm",
+			sendMsgs: []SendMsgTestCase{
+				{
+					desc: "sending 1 of factorydenom should not error",
+					msg: func(factorydenom string) *banktypes.MsgSend {
+						return banktypes.NewMsgSend(
+							suite.TestAccs[0],
+							suite.TestAccs[1],
+							sdk.NewCoins(sdk.NewInt64Coin(factorydenom, 1)),
+						)
+					},
+					expectPass: true,
+				},
+				{
+					desc: "sending 100 of non-factorydenom should not error",
+					msg: func(factorydenom string) *banktypes.MsgSend {
+						return banktypes.NewMsgSend(
+							suite.TestAccs[0],
+							suite.TestAccs[1],
+							sdk.NewCoins(sdk.NewInt64Coin(factorydenom, 1)),
+						)
+					},
+					expectPass: true,
+				},
+				{
+					desc: "sending 100 of factorydenom should not work",
+					msg: func(factorydenom string) *banktypes.MsgSend {
+						return banktypes.NewMsgSend(
+							suite.TestAccs[0],
+							suite.TestAccs[1],
+							sdk.NewCoins(sdk.NewInt64Coin(factorydenom, 100)),
+						)
+					},
+					expectPass: false,
+				},
+				{
+					desc: "sending 100 of factorydenom should not work",
+					msg: func(factorydenom string) *banktypes.MsgSend {
+						return banktypes.NewMsgSend(
+							suite.TestAccs[0],
+							suite.TestAccs[1],
+							sdk.NewCoins(sdk.NewInt64Coin("foo", 100)),
+						)
+					},
+					expectPass: false,
+				},
+				{
+					desc: "having 100 coin within coins should not work",
+					msg: func(factorydenom string) *banktypes.MsgSend {
+						return banktypes.NewMsgSend(
+							suite.TestAccs[0],
+							suite.TestAccs[1],
+							sdk.NewCoins(sdk.NewInt64Coin(factorydenom, 100), sdk.NewInt64Coin("foo", 1)),
+						)
+					},
+					expectPass: false,
+				},
+			},
+		},
+	} {
+		suite.Run(fmt.Sprintf("Case %s", tc.desc), func() {
+			// setup test
+			suite.SetupTest()
+
+			// upload and instantiate wasm code
+			wasmCode, err := os.ReadFile(tc.wasmFile)
+			suite.Require().NoError(err, "test: %v", tc.desc)
+			codeID, _, err := suite.contractKeeper.Create(suite.Ctx, suite.TestAccs[0], wasmCode, nil)
+			suite.Require().NoError(err, "test: %v", tc.desc)
+			cosmwasmAddress, _, err := suite.contractKeeper.Instantiate(suite.Ctx, codeID, suite.TestAccs[0], suite.TestAccs[0], []byte("{}"), "", sdk.NewCoins())
+			suite.Require().NoError(err, "test: %v", tc.desc)
+
+			// create new denom
+			res, err := suite.msgServer.CreateDenom(sdk.WrapSDKContext(suite.Ctx), types.NewMsgCreateDenom(suite.TestAccs[0].String(), "bitcoin"))
+			suite.Require().NoError(err, "test: %v", tc.desc)
+			denom := res.GetNewTokenDenom()
+
+			// mint enough coins to the creator
+			_, err = suite.msgServer.Mint(sdk.WrapSDKContext(suite.Ctx), types.NewMsgMint(suite.TestAccs[0].String(), sdk.NewInt64Coin(denom, 1000000000)))
+			suite.Require().NoError(err)
+			// mint some non token factory denom coins for testing
+			suite.FundAcc(sdk.AccAddress(suite.TestAccs[0].String()), sdk.Coins{sdk.NewInt64Coin("foo", 100000000000)})
+
+			// set beforesend hook to the new denom
+			_, err = suite.msgServer.SetBeforeSendHook(sdk.WrapSDKContext(suite.Ctx), types.NewMsgSetBeforeSendHook(suite.TestAccs[0].String(), denom, cosmwasmAddress.String()))
+			suite.Require().NoError(err, "test: %v", tc.desc)
+
+			for _, sendTc := range tc.sendMsgs {
+				_, err := suite.bankMsgServer.Send(sdk.WrapSDKContext(suite.Ctx), sendTc.msg(denom))
+				if sendTc.expectPass {
+					suite.Require().NoError(err, "test: %v", sendTc.desc)
+				} else {
+					suite.Require().Error(err, "test: %v", sendTc.desc)
+				}
+			}
+		})
+	}
+}