Researchers have warned that the popular cryptocurrency is a scam after discovering backdoor functionality designed to effectively steal user funds.
Dingo Token is relatively small by cryptocurrency standards. Its market capitalization is close to $11 million, ranking down at 774.th Arrange them in order of size as analyzed by Check Point.
However, security vendors are involved in that feature. Token developers say Token Smart has built a backdoor function into the contract, adding a 95% “taxFee” and he added a 4% “LiquidityFee”.
According to Check Point, this “setTaxFeePercent” function operation in the token’s smart contract code has been used 47 times by developers.
Oded Vanunu, Head of Product Vulnerability Research at Check Point, explained that what his company found with Dingo Token is becoming more and more common.
“This is a common tactic that locks up user funds and eventually scammers withdraw all their money. Scammers are increasingly attracted to cryptocurrencies. It’s fast, it’s profitable,” he added.
“If you have incorporated cryptocurrencies into your investment portfolio or are interested in investing in cryptocurrencies in the future, use reputable exchanges and buy from well-established tokens that are heavily traded. is needed.”
Users are already taking to Twitter to complain about being scammed.
“I transferred all my Dingo tokens to the wrong one wallet and deducted 90% of my tokens. Please explain.” wrote one.
At the time of writing, the value of the Dingo Token surged 36% in a single day to exceed $67 million. This means that it surged up the rankings to reach #338 according to CoinMarketCap.
The user’s concern is that once its developer determines that the value has peaked, it activates a backdoor that takes 99% of all users’ coins.
According to a brief 4-page white paper introducing the coin, it only charges a 10% fee per transaction.
“It’s hard to ignore the allure of cryptocurrency. It’s shiny, new, and promises to change the world. ” concluded Check Point.
“But cryptocurrencies are a volatile market. Scammers are constantly finding new ways to steal money using cryptocurrencies, and new forms of crypto are being created all the time.”
