Check Point claims to have identified an intelligent contract function named “setTaxFeePercent” that may allegedly adjust the contract’s purchase and sale costs.
Check Point’s research arm has identified the Dingo Token (DINGO) as a “possible fraud” after placing an intelligent contract feature that has been exploited to alter transaction fees.
Check Point Research (CPR) stated in a Feb. 3 blog post that after investigating the code underlying the Dingo Smart Contract, it uncovered a backdoor function, “setTaxFeePercent,” that may modify the contract’s purchase and sale fees by up to 99%.
Even though the project’s whitepaper states that there is just a 10% cost for each transaction.
According to CPR, this ultimately permits the project’s owner to withdraw up to 99% of the transaction price anytime a customer buys or sells the token.
In one instance, the cyber security software company saw a customer who paid $26.89 for 427 million Dingo Tokens but received 4.27 million, or $0.27 worth of Dingo Tokens instead.
After watching the token climb 8,400% this year, the business began researching the Dingo Token project and discovered at least 47 instances of the function used to allegedly swindle token holders.
“We all know that 2022 was a difficult year in cryptocurrency. However, when we witnessed a token increase of 8400% this year, we had to research the project and figure out what made it unique. “We investigated the Dingo Smart Contract and swiftly concluded that it appeared to be a fraud,” it noted.
The company also pointed to the Dingo Tokens website, claiming that it has “no genuine information about the proprietors of the projects” except a four-page white paper.
“If you’ve incorporated crypto into your investment portfolio or are considering investing in crypto in the future, make sure only to utilize established exchanges and buy from a known token with several transactions behind it,” the research group advised.
Dingo Token was number 298 on CoinMarketCap at the time of writing, with a current market cap of $82,555,168.
Cointelegraph reached out to the Dingo Token founders for comment on the claims but did not receive a response before publishing.
Twitter and CoinMarketCap users have also lately noticed problems with the Dingo Token. For example, in a Feb. 5 article, cryptocurrency dealer IncredibleJoker stated that they could not sell their holdings.
A Dingo Token administrator replied to the user’s Twitter tweet, requesting the user to message them privately, but no additional information has been made public.
Meanwhile, on CoinMarketCap, user mraff1579 mentions CPR’s backdoor feature.
“Wow, don’t listen to transfer to the new wallet. They stole 30 billion coins and only returned 300 million because of false taxes. Wow, pieces of Shit. “I was going to give to deployed for currency but was screwed; very sure anything you do will result in a 99% loss,” stated the message.