Dogecoin (DOGE) Offshoot Flagged as Scam by IT Security Company
Check Point Research (CPR), an IT security company, has raised concerns about the Dingo (DINGO) token. The Dogecoin offshoot is sitting in #774th place on crypto ranking website CoinMarketCap with a total market capitalization of $10.9 million.
According to CPR, the project’s anonymous owner used the “setTaxFeePercent” function to hike the token’s buying and selling fees to an eye-popping 99%, potentially putting investors at risk of losing all their money.
The Dingo token’s website offers very limited information about the project’s owners and only features a simple four-page white paper that outlines the project’s tokenomics.
In its white paper, the project promises to implement a burn strategy that benefits long-term holders, The total number of Dingo Tokens burned is featured on the website for transparency. But let’s be real, the only thing being burned here is the wallets of unsuspecting investors.
The white paper mentions a 10% fee per transaction. However, upon closer examination of the smart contract source code, CPR discovered the above-mentoined “setTaxFeePercent” function that allowed the owner to change the contract’s buy and sell fee. The function has been used 47 times, with the current fee set to 99%.
In a buy transaction, a user invested $26.89 and received only 1% of the invested amount in the form of 4.27 million Dingo tokens.
According to CPR, the transaction is taxed with a 95% tax fee and a 4% liquidity fee, totaling a 99% fee on any transaction. In short, the project is effectively shamelessly stealing users’ funds.
CPR warns crypto users to exercise caution when buying tokens since scammers can create scam tokens and hack contracts in various ways. The crypto market remains in its nascency, and scammers will always find new ways to steal funds using cryptocurrency. As crypto continues to gain popularity, it is crucial for investors to take necessary precautions and only invest in tokens after doing some research.
