Experts suspect the Dingo crypto project of fraud

Specialists at Check Point Research определили the Dingo token (DINGO) as “potential scam.” Experts found a mechanism in the code enabling the owner to manipulate the fee, boosting it to 99%.

The project initially drew researchers’ attention with an anomalously high rise in token price in 2022 by a colossal 8,400%. They decided to study what drove the ascent and found that it resembled a scam.

The Dingo site states that the purchase/sale fee for the asset is 10%. However, in the smart contract there is a function setTaxFeePercent, which the anonymous project owner used to manipulate the value. He invoked the option at least 47 times. At the time of the study, the fee stood at 99%.

As an example, the experts cited one transaction. A user paid $26.89 and received 4.27 million DINGO — exactly 1% of the invested amount. Essentially, he had almost all his money stolen, the specialists noted.

The fee comprises two components: TaxFee (95%) and LiqudityFee (4%).

According to CoinMarketCap, the token’s 24-hour market cap collapsed by nearly 94% — roughly down to $5.7 million.

“Fraudsters will always find new ways to steal your money with crypto, and new variants keep surfacing. If you hold digital assets in your portfolio or are considering investing in the future, you should ensure you use only reputable exchanges and buy a well-known token with a history of multiple transactions,” concluded Check Point Research.

As reported by Solidus Labs, the market saw 117,629 fraudulent tokens linked to rug-pull schemes in the first 11 months of 2022.