The world of cryptocurrency is no stranger to scams and fraudulent activities, with unsuspecting investors losing millions of dollars every year. The latest addition to this growing list is the Dingo Token Scam (DINGO), a cryptocurrency that has been flagged as a potential scam by Check Point Research (CPR), the research arm of cyber security software firm Check Point.
Dingo Token made headlines after it rose 8,400% this year, which led CPR to take a closer look at the project. Upon investigating the code behind the Dingo Smart Contract, CPR discovered a backdoor function, “setTaxFeePercent,” that allows the project owner to manipulate transaction fees and change the contract’s buy and sell fee by up to 99%. This is in stark contrast to the project’s whitepaper, which states that there is only a 10% fee per transaction.
The implications of this backdoor are far-reaching, as it essentially allows the project owner to withdraw up to 99% of the transaction amount whenever a user buys or sells the token. In one instance, CPR observed a user who spent $26.89 to purchase 427 million Dingo Tokens but instead received only 4.27 million, or $0.27 worth of Dingo Tokens. The firm found at least 47 instances of the function being used to scam token investors.
Dingo Token’s rise to fame is a cautionary tale for investors looking to put their money into the cryptocurrency market. With the rise of decentralized finance (DeFi) and non-fungible tokens (NFTs), the market has become increasingly crowded and cluttered, making it harder for investors to separate the wheat from the chaff. This is why it’s crucial to thoroughly research any investment before putting money into it.
In response to the scam, CPR has urged all Dingo Token investors to withdraw their investments and to be cautious when investing in cryptocurrencies in the future. The firm has also reported the scam to relevant authorities, and an investigation is ongoing.
The Dingo Token scam serves as a warning to investors to be vigilant when investing in cryptocurrencies and to always research the project and its code thoroughly before investing. With the rise of decentralized finance and NFTs, the cryptocurrency market is becoming increasingly complex, and investors must be wary of scams and fraudulent activities.
The Dingo Token scam likewise highlights the importance of due diligence in the cryptocurrency market and the need for stricter regulations and oversight to protect investors from scams and fraudulent activities. The market is still in its infancy, and as it continues to grow and mature, it’s crucial that investors are protected from these types of scams and fraudulent activities.
Will RenQ Finance (RENQ) beat Cosmos (ATOM), and Polkadot (DOT) in terms of market cap in 2023
How can one crypto beat another? Nowadays, there are tens of thousands of distinct cryptocurrencies, making it difficult to categorize them all under one criteria. But generally speaking, a cryptocurrencies is a decentralized, encrypted form of digital money....
NFT Trading Reaches Record High of $2B in February, Fueled by Blur
A brief overview of NFT trading and the recent surge in trading volumes Non-fungible tokens (NFTs) have created a buzz in blockchain technology and cryptocurrency. These unique digital assets have gained significant popularity and interest among investors and...
From Digital Art to Royalties: Exploring the Impact of NFT Marketplaces
A brief overview of NFTs and their growing popularity NFTs, or non-fungible tokens, are unique digital assets stored on a blockchain, providing proof of ownership and scarcity. They can represent anything from art to music to video game items. These non-fungible...
Open Sea for Creators: The Future of NFT Marketplaces
What are NFTs and NFT marketplaces? Distinct from other digital assets, non-fungible tokens are unique and indivisible entities that cannot be replicated or subdivided. They are commonly used to represent digital art, collectibles, gaming assets, and other digital...