Researchers at IT security company Check Point Security have identified Dingo Token as a potential scam after discovering a function that allows the project's owner to manipulate trading fees up to 99% of the transaction value. Check Point has already observed this malicious fee change 47 times. Dingo Token is currently ranked #619 on CoinMarketCap with a market capitalization of over $20 million. Its value has been increasing rapidly, making it a popular target for high-risk investments. Despite its growing popularity, the project's website does not contain much information about the owner, and the published Tokenomics white paper only mentions a 10% transaction fee. According to Check Point, the source code contains a function called SetTaxFeePercent, which enables the project owner to change it on the fly when someone buys or sells Dingo Tokens, receiving up to 99% of the amount. The transaction fees are analyzed as 95% tax and 4% liquidity fees, leaving the investor with the remaining 1% and no way to reverse the transaction. Check Point has reported that in one case, a user spent $26.89 to purchase 427 million Dingo Tokens but instead received 4.27 million, which is exactly 1%. Although the 47 cases seen by Check Point are not enough to affect the broader investor base of Dingo Tokens, they could be a test run by the operator, who can apply the function change on all holders and cash out quickly when the token reaches its maximum price. Reports from users who have taken to social media to complain about difficulty in swapping freely the tokens they have, with no response from the official Dingo Token accounts, have been found by BleepingComputer. Check Point's findings are certainly concerning, so they reached out to the project owners for comment. Before investing in any cryptocurrency project, it is important to research the token and the team behind it and look for red flags such as incomplete data or too little information on the official website. Cryptocurrency investors should openly ask about a project in the community to hear the experience of other users. If you are getting into this trading game, it is recommended to use only reputable exchange services and diversify investments across different coins.
This Cyber News was published on www.bleepingcomputer.com. Publication date: Mon, 06 Feb 2023 02:45:03 +0000