The research limb of cybersecurity bundle firm Check Point has flagged the Dingo Token (DINGO) arsenic a “potential scam” aft reportedly discovering a astute declaration relation that has been utilized to manipulate transaction fees.
In a Feb. 3 blog post, Check Point Research (CPR) said it looked into the codification down the Dingo Smart Contract, discovering a backdoor relation "setTaxFeePercent," which tin alteration the contract's bargain and merchantability interest up to 99%.
This is contempt the project’s whitepaper stating that determination is lone a 10% interest per transaction.
According to CPR, this fundamentally allows the project’s proprietor to retreat up to 99% of the transaction magnitude whenever a idiosyncratic buys oregon sells the token.
In 1 lawsuit the cyber information bundle steadfast observed a idiosyncratic who spent $26.89 to acquisition 427 cardinal Dingo Tokens but alternatively received 4.27 million, oregon $0.27 worthy of Dingo Tokens.
The steadfast said it decided to analyse the Dingo Token task aft seeing the token emergence 8,400% this year, and recovered astatine slightest 47 instances of the relation being utilized to allegedly scam token investors.
"We each cognize that 2022 was a hard twelvemonth successful the crypto market. However, erstwhile we saw a token raised by 8400% this year, we had to analyse the task and recognize what was unsocial astir it. We examined the Dingo Smart Contract and rapidly recovered it seemed similar a scam,” it wrote.
The steadfast besides pointed to the Dingo Tokens website, noting that it has "no existent accusation astir the owners of the projects," different than a four-page whitepaper.
"If you've incorporated crypto into your concern portfolio oregon are funny successful investing successful crypto successful the future, you should marque definite to lone usage known exchanges and bargain from a known token with respective transactions down it," wrote the probe firm.
As of writing, Dingo Token is ranked 298 connected CoinMarketCap with a unrecorded marketplace headdress of $82,555,168.
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Cointelegraph reached retired to the creators of Dingo Token for a effect to the allegations but has yet to person a reply earlier publication.
Users of Twitter and CoinMarketCap person besides precocious reported issues with the Dingo Token. Crypto trader IncredibleJoker said they could not merchantability their holdings successful a Feb. 3 post.
@DingoToken erstwhile tin I merchantability your scam coin?? My crap is worthy $26,000 and I can’t merchantability immoderate of them!!!!!!!!!!!— IncredibleJoker (@IncredibleJ0ker) February 5, 2023
Dingo Token responded to the user's Twitter post, asking the idiosyncratic to connection them privately, but nary further updates person been made public.
While connected CoinMarketCap, idiosyncratic mraff1579 appeared to reference the backdoor relation raised by CPR.
"Wow dont lislisten to nonstop to caller wallet they took 30 cardinal coins and lone received 300 mil due to the fact that of fraudulent taxation wow ppieces of Shit. . I was going to nonstop to deployed for coin but got screwed , beauteous definite thing you bash volition effect successful mislaid of 99%," the station said.