This NFT token is a ‘live scam’, researchers warn
Security company Check Point Research (CPR) has flagged the popular Dingo Token as a live scam. For those unaware, Dingo Token is a protocol layer that provides a new world of NFT. According to the report, the threat actors behind the token have embedded a backdoor function into the smart contract to manipulate fees going up to as much as 99%. The function has also been used 47 times. The Dingo Token is currently ranked at 774 by market capitalisation at $10,9 million. As per the report, investors of Dingo Token are at risk of potentially losing all their money. CPR has also warned about the growing interest in cryptocurrency scams by hackers.
99% contract fee
The smart contract in Dingo Token charges a 95% tax fee and a 4% liquidity fee. This means that the platform will charge a 99% fee on any transaction with a contract that will steal your funds. The report also shares an image of how the transfer amount is calculated. Apart from this, the report also offers two other images to show how the tax fee and the liquidity fee are calculated.
Head of products vulnerabilities research at Check Point, Oded Vanunu said, “The Dingo Token is a clear scam. We found a backdoor code added to the token smart contract that allows the owner to change the fee charge. They changed it to a staggering 99% fee.”
Vanunu added, “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. If you’ve incorporated crypto into your investment portfolio or are interested in investing in crypto in the future, you should use credible exchanges and buy from an established token with numerous transactions behind it.”
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99% contract fee
The smart contract in Dingo Token charges a 95% tax fee and a 4% liquidity fee. This means that the platform will charge a 99% fee on any transaction with a contract that will steal your funds. The report also shares an image of how the transfer amount is calculated. Apart from this, the report also offers two other images to show how the tax fee and the liquidity fee are calculated.
Head of products vulnerabilities research at Check Point, Oded Vanunu said, “The Dingo Token is a clear scam. We found a backdoor code added to the token smart contract that allows the owner to change the fee charge. They changed it to a staggering 99% fee.”
Vanunu added, “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. If you’ve incorporated crypto into your investment portfolio or are interested in investing in crypto in the future, you should use credible exchanges and buy from an established token with numerous transactions behind it.”
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