The research arm of cybersecurity software firm Check Point has flagged the Dingo (DINGO) token as a “potential scam” after reportedly discovering a smart contract feature that has been used to manipulate fees for transaction.
In a February 3 blog post, Check Point Research (CPR) saying He examined the code behind the Dingo Smart Contract and discovered a backdoor function “setTaxFeePercent”, which can change the contract’s buy and sell fee by up to 99%.
This is despite the technical document of the project. stating that there is only a 10% fee 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 purchase 427 million Dingo Tokens, but instead received 4.27 million, or $0.27 worth of Dingo Tokens.
The firm said it decided to investigate the Dingo Token project after seeing the token rise 8,400% this year, finding at least 47 instances of the feature being used to scam token investors.
“We all know that 2022 was a difficult year in the cryptocurrency market. However, when we saw a token raised by 8400% this year, we had to investigate the project and understand what was unique about it. We looked at the Dingo smart contract and I quickly found out it looked like a scam,” he wrote.
The firm also pointed to the Dingo Tokens website, noting that it has “no real information on the owners of the projects” aside from a four-page whitepaper.
“If you have incorporated crypto into your investment portfolio or are interested in investing in crypto in the future, you should ensure that you only use known exchanges and buy from a known token with multiple transactions behind it,” the research firm wrote.
At the time of writing, Dingo Token is ranked 298th in CoinMarketCap with a live market capitalization of $82,555,168.
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Cointelegraph reached out to the creators of Dingo Token for a response to the allegations, but has yet to receive a response ahead of press.
Twitter and CoinMarketCap users also recently reported issues with the Dingo token. Cryptocurrency trader IncredibleJoker said they could not sell their holdings in a February 3 post.
@DingoToken When can I sell your scam coin? My shit is worth $26,000 and I can’t sell any of it!
— IncredibleJoker (@IncredibleJ0ker) February 5, 2023
Dingo Token responded to the user’s Twitter post, asking him to send him a private message, but no further updates have been made public.
While on CoinMarketCap, user mraff1579 appeared reference the backdoor function raised by CPR.
“Whoops don’t listen to send to a new wallet they took 30 billion coins and only received 300 million due to fraudulent tax wow you pieces of shit lost 99%,” the post read.
