Researchers at IT security firm Check Point security have flagged Dingo Token as a potential scam after discovering a feature that allows project owners to manipulate transaction fees of up to 99% of the transaction value.
Check Point's warning comes after company researchers have witnessed such malicious fee changes 47 times.At the time of writing, Dingo Token is ranked 298th on CoinMarketCap with a real-time market cap of $82,555,168. Its value growth has exploded, making it a magnet for high-risk investments.
Despite Dingo Token's growing popularity, the project's website doesn't include much information about the owner, and the published "tokenomics" white paper only mentions a 10% (5% + 5%) transaction fee.
However, according to Check Point, the source code contains a function called “setTaxFeePercent,” which enables project owners to change Dingo tokens on the fly whenever someone buys or sells them, receiving up to 99% of the amount.
The transaction fee analysis is 95% tax and 4% liquidity fee, and the remaining 1% is reserved for investors, and there is no way to reverse the transaction.
The company also pointed to the Dingo Tokens website, saying that aside from a four-page white paper, there is "no real information about the project's owners."
The research firm wrote: "If you have already incorporated cryptocurrencies into your portfolio, or are interested in investing in cryptocurrencies in the future, you should make sure to only use known exchanges, and buy from a coin known to be behind. There are a few deals."
