- A cybersecurity software firm alerts the crypto community of a potential scam being conducted by the developers of Dingo Token.
- Check Point Research (CPR) notifies the public about the lack of information about the owners of the crypto project.
- Investors lose 99% of their funds when performing a transaction.
A cybersecurity software firm named Check Point Research (CPR) recently flagged the Dingo Token as a potential scam due to an in-depth investigation that revealed that the crypto project had malicious intentions toward its investors.
On February 3, Check Point published a blog post, alerting the crypto community about the scamming scheme of the Dingo Token project developers.
In the blog post written by Dikla Barda, Roman Zaikin, and Oded Vanunu, the cybersecurity firm stated that the token’s owners had altered the token’s smart contract function, and this had come across as a suspicious move which contradicted their whitepaper.
According to Check Point Research (CPR), the Dingo Token had risen to 8400% this year, prompting the cybersecurity firm to investigate the reason behind the project.
The developers of Dingo Token (DINGO) had manipulated the smart contract by including a “setTaxFeePercent,” which could control the purchase and trade fee by up to 99%. This was ruled a potential scam because the token had written in its four-page whitepaper that there was only a 10% fee per transaction.
How does this work?
According to CPR, the manipulated smart contract function could allow the project owners to withdraw 99% of the investor’s funds whenever they purchase or sell the token. CPR warned that this was dangerous to investors as they could lose all their funds. To further bolster how the “setTaxFeePercent” worked, the firm gave an illustrative example to the crypto community.
CPR noted that if an investor were to use $26.89 to purchase dingo tokens, they would earn around 427 million tokens; however, they would receive 4.27 million tokens. This was calculated to be precisely 1% of the expected amount. In performing a transaction, the dingo token project would deduct a 95% tax fee and a 4% LiquidityFee which amounted to 99%.
CPR also mentioned that upon reviewing the crypto project, it was discovered that there had been 47 different transactions made with the manipulated smart contract function in place. The crypto token rising to 8400% was a cause for alarm, especially when 2022 was a challenging year in the crypto industry.
“We all know that 2022 was a difficult year in the crypto economy. However, when we saw a token raised by 8400% this year, we had to investigate the project and understand what was unique about it,” CPR said.
Members of the crypto community have been vocal lately about the dingo tokens, complaining that it was worth nothing. Check Point Research ended the blog post by advising the crypto community about how they should invest in crypto tokens.
“You should use known exchanges and purchase from a known token with multiple transactions behind it.”
Check Point Research (CPR) announced that the Dingo Tokens website needed accurate information about its owners. This was a suspicious move because someone needed to be held accountable for the 99% withdrawal fee that robbed investors of their funds.