Dingo Token has been reported as a possible scam by IT security firm Check Point security researchers after discovering a feature that lets the project’s owner manipulate trading fees up to 99% of the transaction value. Check Point analysts observed this fraudulent charge modification 47 times before issuing the alert.
Dingo Token presently has a market capitalization of around $20 million and is ranked 619 on CoinMarketCap. Due to its exponential value increase, it has become a popular target for high-risk investments. Despite Dingo Token’s growing popularity, the website for the project doesn’t provide much information about the founder, and the 10% (5% + 5%) transaction fee is the only reference made in the released “tokenomics” white paper.
However, Check Point claims that the source code has a function called “setTaxFeePercent” that enables the project owner to alter it instantly when someone buys or sells Dingo Tokens, earning up to 99% of the sum.
Dingo Token Could Alter The Contract’s Purchase And Sale Fees By Up To 99%
The analysis of the transaction fees shows a tax of 95% and liquidity fees of 4%, leaving the investors with 1% and no means to undo the transaction.
According to Check Point, in one instance, they noticed a customer paid $26.89 for 427 million Dingo Tokens but only received 4.27 million, or precisely 1%, of what they had intended to buy.
Investors in Dingo Token only receive 1% of the anticipated return. The operator may be using the 47 cases discovered by Check Point as a test run even though they are insufficient to have an impact on the larger Dingo Token investor base since they can apply the function change to all holders and quickly withdraw their funds when the token reaches its highest price.
The official Dingo Token accounts have not responded to any of the reports that users have made regarding difficulties exchanging their tokens freely on social media. The findings from Check Point are undoubtedly concerning, so we contacted the project owners for an explanation. At the time of publication, we still waited for a response.
Research the token and the team behind it before investing in any cryptocurrency projects. Keep an eye out for any warning signs like missing information or insufficient data on the official website.
Investors in cryptocurrencies should be upfront about their questions in order to hear what other people have to say about a project. If you’re new to trading, it is advised to diversify your money over several different coins and only utilize reliable exchange providers.
5 Best Ways To Examine A Crypto Token Before Buying It
The following are preventative measures to aid in your analysis of any cryptocurrency token and to assist you in making a confident decision.
1. Examine the whitepaper for the token.
The team’s goals for the project and the token’s use cases are described in the whitepaper for each token. This will enable you to determine whether reasonable goals have been set. Even if you’ve identified achievable objectives, you must confirm that they weren’t plagiarized from the whitepaper of a different project. Because let’s be honest, the latter has frequently occurred.
2. Evaluate the project’s team.
The next step is to evaluate the team supporting the project after a solid understanding of what the initiative offers. Has anyone ever had experience working on respectable projects? What are their credentials? Are they trustworthy participants in the blockchain ecosystem?
This evaluation provides you peace of mind that experts in the field support the token you’re investing in. Think of this as a fundamental investigation that will prevent you from investing in a business that is simply interested in maximizing profits. But keep in mind that photographs can be easily stolen from the internet.
3. View the project’s social media pages.
Keeping a close eye on the token’s community on social media is a proven way to invest in an ICO. Here, you may find out if a sizable community is backing the project’s cause. Reddit, Facebook, Twitter, and Telegram would be good places to start.
Additionally, you’ll learn what others are saying about the project and be better able to make selections. Of course, there are bounties where individuals are compensated for speaking favorably about the project. Therefore, these reviews can be prejudiced.
4. Examine any legality concerns
You’ve found a fantastic token’s ICO to invest in, but you’re prohibited from taking part by the laws of your country. If you continued to move forward with your investment, you would be breaching the law.
Having said that, you must confirm that your country’s authorities do not limit participation in such offerings. Despite this, ICOs are still uncontrolled in many areas. However, some regulators are attempting to make more lenient regulations.
5. Stay current on project announcements related to the token.
When your money is on the line, you don’t want to invest in a token and then go to sleep. Following the initiative on numerous social media platforms is thus a good idea. To stay informed, check out the most recent announcements on these platforms.
Furthermore, most projects post notices on sites like the Bitcoin Talk Forum and others. You should use this opportunity to post any queries you may have on the Forum. Additionally, because everyone is free to comment, you’ll learn what users think of such news.
Conclusion
The Dingo Token (DINGO) has apparently been highlighted as a “possible scam” by Check Point’s research division following the purported discovery that an intelligent contract function has been exploited to rig transaction fees. The cybersecurity company Check Point claimed to have found a smart contract function called “setTaxFeePercent” that may alter the purchase and sale costs in the contract. In a blog post on February 3, Check Point Research (CPR) claimed that after examining the Dingo Smart Contract’s source code, it had found a backdoor function called “setTaxFeePercent” that could alter the contract’s purchase and sale fees by up to 99%. Even though the project’s whitepaper claims there is only a 10% fee for each transaction, this is the case.
