D Key Highlights
- Check Point said it discovered a smart contract function called “setTaxFeePercent” that can change the contract’s buy and sell fees.
- Dingo Token is identified as a potential scam after noticing the smart contract function.
Check Point, the research arm of a cybersecurity software firm, has identified the Dingo Token (DINGO) as a potential scam after discovering a smart contract function that has been used to manipulate transaction fees.
In a blog post, Check Point Research (CPR) revealed that after looking into the code behind the Dingo Smart Contract, they discovered a backdoor function called “setTaxFeePercent,” which can alter the contract’s buy and sell fees by up to 99%, even though the project’s whitepaper stated a 10% fee per transaction.
This allows the project’s owner to take up to 99% of the transaction value whenever a user buys or sells the token. Check Point observed a case where a user spent $26.89 to buy 427 million Dingo Tokens but only received 4.27 million worth $0.27.
Why Did CPR Decide To Investigate On Dingo Token Project?
A research firm said it decided to investigate the Dingo Token project after noticing an 8,400% increase in its value this year. The firm found multiple instances of the token being used for fraudulent purposes.
Check Point criticized the lack of information on the website and the project owners, pointing out that the only information available was a four-page white paper. The firm advised investors to only purchase tokens from known exchanges with a proven track record. Dingo Token was ranked 298th on CoinMarketCap with a live market cap of $82,555,168.
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Reported Issues
On social media and CoinMarketCap, users have reported issues with Dingo Token. For example, a crypto trader posted on Twitter that they could not sell their holdings.
A moderator from Token responded and asked the user to contact them privately, but no further updates have been shared publicly. On CoinMarketCap, a user commented on the backdoor function reported by CPR.
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