Researchers have labelled the newly introduced Dingo Token as a potential scam after showing a feature that enables a project owner to set the trading fees to as much as 99% of the transaction value.
These new advisories came after several researchers had noticed this malicious fee change nearly 50 times.
Dingo Token has a potential for growth, which could lure investors.
Currently, Dingo Token holds the 610th position in CoinMarketCap and has a market capitalisation of more than $20 million. The growth in value of this new project shows a promising potential that could bait high-risk investments.
One of the red flags that these new token shows are that their website does not contain factual information regarding their owner. Moreover, the published “tokenomics” white paper only mentioned a 10% transaction fee, which is far-fetched from the initial 99%.
However, the researchers said that the source code includes a function coded as ‘setTaxFeePercent’, which allows an owner to alter it freely when someone purchases or sells Dingo Tokens, receiving up to 99% of the value.
The researchers also analysed the transaction fee and showed that they have 95% tax and 4% liquidity fees, which leaves the investors with the remaining 1%, and they could not do anything about the rate.
One example of this instance is one user who spent $26.89 worth of buying approximately 427 million Dingo Tokens and received only about 4.27 million tokens, which is equivalent to 1%.
There are currently 47 cases that the researchers observed, but they are not enough to impact new investors regarding their idea about the Dingo Tokens. Therefore, these initial users could be a trial run for the Dingo operators to execute a function change on all holders and cash out immediately when the token reaches the maximum value.
Cybersecurity experts explained that before a user should invest in any crypto project, they should ensure the legitimacy of the token. Furthermore, users should also research before putting their money on the line.
The researcher’s findings show an alarming feature that the Dingo Token provides. Therefore, owners and potential buyers should be careful about how much they will spend on this new cryptocurrency project.
