The research arm of cybersecurity software company Check Point has flagged Dingo Token (DINGO) as a “potential fraud” after it was reported to have discovered smart contract functionality used to manipulate transaction fees.
In a February 3 blog post, Check Point Research (CPR) Said After examining the code behind the Dingo smart contract, we discovered a backdoor function “setTaxFeePercent” that can change the contract’s buying and selling fees by up to 99%.
This is despite the project’s whitepaper state Only 10% commission per transaction.
According to CPR, this will allow project owners to withdraw up to 99% of the transaction amount whenever users buy or sell tokens.
In one case, a cybersecurity software company observed that users who spent $26.89 to buy 427 million Dingo tokens instead received $4.27 million or $0.27 worth of Dingo tokens. .
The company said it decided to investigate the Dingo Token project after seeing the token climb 8,400% this year, and found at least 47 instances of the functionality being used to defraud token investors.
“We all know 2022 was a tough year for the cryptocurrency market.But when we saw the token climb 8400% this year, we decided to investigate the project and see what makes it unique. We had to understand.We investigated the Dingo smart contract and quickly realized it looked like a scam.”
The company also pointed to the Dingo Tokens website, noting that other than a four-page whitepaper, “there is no real information about the project’s owner.”
“If you have incorporated cryptocurrencies into your investment portfolio or are interested in investing in cryptocurrencies in the future, use only known exchanges and buy from known tokens with multiple trades. Please do so,” the research firm wrote.
At the time of writing, Dingo Token is ranked 298th. coin market capitalization Current market capitalization is $82,555,168.
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Cointelegraph has asked the creators of Dingo Token for a response to the allegations, but has yet to receive a response prior to going public.
Twitter and CoinMarketCap users have also recently reported issues with the Dingo Token. His IncredibleJoker, a cryptocurrency trader, said in a February 5 post that he could not sell his holdings.
@dingo token When can i sell your scam coins?? my shit is worth $26,000 and i cant sell any of it!!!!!!!!!!!!
— The Incredible Joker (@IncredibleJ0ker) February 5, 2023
Dingo Token moderators responded to the user’s Twitter post asking the user to privately message them, but no further updates have been published.
On CoinMarketCap, user mraff1579 reference Backdoor functionality triggered by CPR.
“Wow don’t listen to send to new wallet they took 30 billion coins and only 300 million due to fraudulent taxes.. I was deployed for coins I was going to send it to the correct location, but I failed.I lost 99%,” the post said.