Researchers have claimed that a hot new cryptocurrency that has attracted a lot of attention and investment may actually be just a scam designed to steal people’s money.
According to experts from Check Point Research (CPR), the developers behind Dingo Token have designed smart contracts in a way that allows them to manipulate fees and withdraw users’ wallets.
Every cryptocurrency has fees – micropayments designed to incentivize people to join the network and be rewarded for validating transactions. But while fees are usually low cost (with exceptions, obviously), Crypto Dingo Token holders have included a function in the smart contract that allows them to increase fees by 99%.
An “obvious scam”
CPR says holders can get 95% of transactions with “Tax Fees” and an additional 4% with “Liquidity Fees”. So far, this function has been used 47 times.
Crypto Dingo Token is currently ranked #5462, with a market cap of $4,159,936.
“Dingo Token is an obvious scam. We found a backdoor code added to the token smart contract that allows the holder to change the fee rate,” said Oded Vanunu, Head of Product Vulnerability Research at Check Point Software. “They changed it to an amazing 99% fee. This is a common tactic to lock up users’ funds and eventually the scammers will withdraw all of their funds.”
According to Vanunu, cryptocurrencies are a great industry for scammers because they allow all kinds of malicious campaigns to be carried out, while keeping their value intact. identity (opens in a new tab) a secret. After all, most cryptocurrencies are anonymous, allowing people to receive large amounts of money while remaining anonymous.
“Scammers are increasingly finding cryptocurrencies attractive. They can be anonymous. It’s fast. That is profitable. If you have incorporated cryptocurrencies into your portfolio or are interested in investing in cryptocurrencies in the future, it is recommended that you use trusted exchanges and buy from an approved token. setup with lots of transactions behind it.”
