Researchers at IT security firm Check Point security have flagged Dingo Token as a potential scam after finding a feature that allows the project owner to manipulate trading fees up to 99% of the transaction value.
Check Point’s warning comes after the company’s researchers have already witnessed this malicious fee change 47 times.
Dingo Token is currently ranked #619 in CoinMarketCap with a market cap of over $20 million. Its growth in value has been explosive, making it a magnet for high-risk investments.
Despite the growing popularity of Dingo Token, its project website does not contain much information about the owner and published “tokenomics” white paper only mentions a 10% (5% + 5%) transaction fee.
However, according to Check Pointthe source code contains a function called “setTaxFeePercent”, which allows the project owner to modify it on the fly when someone buys or sells Dingo tokens, receiving up to 99% of the amount.
The transaction fee is analyzed as 95% tax and 4% liquidity fee, leaving investors with the remaining 1% and no way to cancel the transaction.
Check Point says that in one case they observed, a user spent $26.89 to purchase 427 million Goofy tokens, but instead received 4.27 million, or exactly 1%.
While the 47 cases seen by Check Point are not enough to impact Dingo Tokens’ wider investor base, they could be a test run by the trader, who can apply the change of function to all holders. and cash out quickly when the token reaches its maximum price.
BleepingComputer found several reports from users who took to social media to complain about the difficulty in freely trading the tokens they have, with no response from official Dingo Token accounts.
Check Point’s findings are certainly alarming, so we reached out to the owners of the project for comment. At the time of publication, we had not yet received a response.
Before investing your money in any cryptocurrency project, research the token and the team behind it and look for red flags such as incomplete data or too little information on the official site.
Cryptocurrency investors should openly ask questions about a project in the community to hear other users’ experience. If you are getting into this trading game, it is recommended to use only reputable exchange services and diversify investments across different coins.