The research division of the cybersecurity software firm Check Point has flagged Dingo Token (DINGO) as a “potential scam” after reportedly discovering a smart contract feature that has been used to manipulate transaction fees.
In a February 3 blog post, Check Point Research (CPR) said that after examining the code behind the Dingo smart contract it had discovered a backdoor function, “setTaxFeePercent”, which can change the contract’s buy and sell fee by up to 99%.
This occurs despite the project’s white paper states that there is only a 10% commission per transaction.
According to CPR, this essentially allows the project owner to withdraw up to 99% of the transaction amount each time a user buys or sells the token.
In one case, the cybersecurity software company observed a user who spent $26.89 to buy 427 million Dingo Tokens, but instead received 4.27 million, or $0.27 worth of Dingo Tokens.
The firma said he decided to look into the Dingo Token project after seeing the token go up 8,400% this year, and found at least 47 instances of the feature being used to allegedly defraud token investors.
“We all know that 2022 was a tough year for the cryptocurrency market. However, when we saw that a token was up 8,400% in the year, we had to investigate the project and understand what was unique about it. We examined the Dingo smart contract and quickly discovered that it looked like a scam,” he wrote.
The firm also pointed to the Dingo Tokens website; He said he doesn’t have “any real information about the owners of the projects” apart from a four-page white paper.
“If you have incorporated cryptocurrencies into your investment portfolio or are interested in investing in them in the future, you should ensure that you only use known exchanges and buy from a known token with multiple transactions behind it,” the firm wrote. research.
At the time of writing this article, Dingo Token was ranked 298 on CoinMarketCap with a live market capitalization of $82,555,168.
Cointelegraph contacted the creators of Dingo Token for a response to the allegations, but did not receive a response prior to the publication of this article.
Twitter and CoinMarketCap users have also recently reported issues with Dingo Token. Cryptocurrency trader IncredibleJoker said he could not sell his holdings in a February 5 post.
@DingoToken when can I sell your scam coin?? My shit is worth $26,000 and I can’t sell any of them!!!!!!!!!!!
— IncredibleJoker (@IncredibleJ0ker) February 5, 2023
@DingoToken when can I sell your scam coin? My shit is worth $26,000 and I can’t sell anything!!!!!!!!!
A Dingo Token moderator responded to the user’s Twitter post, asking him to send them a private message, but no further updates have been made public.
For his part, On CoinMarketCap, user mraff1579 seemed to be referencing the backdoor feature raised by CPR.
“Wow, don’t send a new wallet. They took 30 billion coins and I only received 300,000 due to fraudulent taxes. Wow, you pieces of shit. I was going to send deploy for the coin, but I got screwed. I’m pretty sure anything you do will result in a 99% loss,” the post said.
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