AdminResearchers say the hot new cryptocurrency that has garnered a lot of attention and investment may actually be a scam to steal people’s money.
According to experts from Check Point Research (CPR), the creators of Dingo Token designed the smart contract in a way that allows them to manipulate fees and drain users’ wallets.
Each cryptocurrency has fees – micropayments designed to encourage people to participate in the network and receive rewards for validating transactions. But while the fees are usually low (with exceptions, of course), the owners of Crypto Dingo Token have included a feature in their smart contract that allows them to raise the fee to 99%.
“Bright Deception”
The CPR says owners can take 95% of transactions in “taxFee” and an additional 4% in “LiquidityFee”. So far, the feature has been used 47 times.
The Crypto Dingo Token is currently ranked 5,462 with a market capitalization of $4,159,936.
“Dingo Token is an outright scam. We found a backdoor code added to the token’s smart contract that allows the owner to change the fee,” said Oded Vanunu, head of product vulnerability research at Check Point Software. “They changed it to a staggering 99% fee. This is a common tactic to block user funds and ultimately the scammers are taking all the money.”
According to Vanunu, cryptocurrencies are a great industry for scammers because they allow all kinds of malicious campaigns while keeping their identity (opens in a new tab) secret. After all, most cryptocurrencies are anonymous, which allows people to obtain large sums of money while remaining anonymous.
“Scammers are increasingly finding cryptocurrencies attractive. They can remain anonymous. It’s quick. It’s lucrative. If you have included cryptocurrencies in your investment portfolio or are interested in investing in cryptocurrencies in the future, you should use credible exchanges and buy from an established token with numerous transactions behind it.”
