Researchers have recently issued a warning about a cryptocurrency known as Dingo Token, labeling it as a potential scam due to the discovery of backdoor functionality designed to siphon users’ funds. Despite its relatively modest market cap of around $11 million, Dingo Token ranked 774th in size when scrutinized by experts at Check Point.
What has raised red flags for the security vendor is the inclusion of backdoor functionality within the token’s smart contract, which imposes a hefty 95% “taxFee” and a 4% “LiquidityFee” on users. Check Point’s investigation revealed that the token’s developers have manipulated the “setTaxFeePercent” function in the smart contract code a total of 47 times, signaling potential malicious intent.
Oded Vanunu, head of product vulnerabilities research at Check Point, emphasized that such tactics are becoming increasingly common within the cryptocurrency space. He explained, “This is a common tactic that locks users’ funds and eventually the scammers pull out all the money. Scammers are increasingly finding cryptocurrency attractive. They can stay anonymous. It’s fast. It’s lucrative.”
Users have already started to voice their grievances on social media platforms like Twitter, with one user reporting a significant deduction of tokens during a transfer. As of the latest update, the value of Dingo Token has surged by 36% in a single day, reaching over $67 million and catapulting it to #338 on CoinMarketCap’s rankings.
The primary concern among users is the potential activation of the backdoor by the developers to abscond with 99% of all users’ coins once they deem the value to have peaked. Despite the claims made in the brief white paper introducing the coin, which states a 10% fee per transaction, the looming threat of a mass exodus of funds remains a cause for alarm.
In light of these developments, Check Point advises investors to exercise caution when dealing with cryptocurrencies, urging them to use reputable exchanges and opt for established tokens with a proven track record. While the allure of cryptocurrency as a lucrative investment opportunity is undeniable, the volatile nature of the market coupled with the ever-evolving tactics of scammers underscore the importance of remaining vigilant.
As the cryptocurrency landscape continues to evolve, it is crucial for users to stay informed and educated about potential risks and to make informed decisions when engaging with digital assets. By staying vigilant and conducting due diligence, investors can safeguard their funds and minimize the risk of falling victim to fraudulent schemes within the cryptocurrency space.