The research arm of cybersecurity software firm Check Point has flagged the Dingo Token (DINGO) as a “potential scam” after reportedly discovering a smart contract function that has been used to manipulate transaction fees.
In a Feb. 3 blog post, Check Point Research (CPR) said it looked into the code behind the Dingo Smart Contract, discovering a backdoor function “setTaxFeePercent,” which can change the contract’s buy and sell fee up to 99%.
This is despite the project’s whitepaper stating that there is only a 10% fee per transaction.
According to CPR, this essentially allows the project’s owner to withdraw up to 99% of the transaction amount whenever a user buys or sells the token.
In one case the cyber security software firm observed a user who spent $26.89 to purchase 427 million Dingo Tokens but instead received 4.27 million, or $0.27 worth of Dingo Tokens.
The firm said it decided to investigate the Dingo Token project after seeing the token rise 8,400% this year, and found at least 47 instances of the function being used to allegedly scam token investors.
“We all know that 2022 was a hard year in the crypto market….
