The research company Check Point Research, which studies cybersecurity issues, suspected the DINGO cryptocurrency project of a possible fraud.
Check Point disclosed on its blog an undocumented DINGO project backdoor feature called “setTaxFeePercent” that can arbitrarily change the commission for buying and selling a contract up to 99%, as opposed to the stated commission of 10% per transaction.
According to experts, this allows project owners to withdraw a significant portion of the amount whenever a user buys or sells a DINGO token. Check Point has identified over 40 confirmed cases of this feature being used for token fraud.
For example, one of the users spent $27 to buy 427 million DINGO tokens, but instead received 4.2 million tokens, which is equivalent to $0.27 or 1% of the money invested. At the time of writing Dingo Token takes Ranked 339th on CoinMarketCap with a price of $0.0000004554 and a market cap of around $67.1 million.
Last year, cybersecurity agency PeckShield reported that the developers of the Polygon-based web3 game Dragoma pulled $3.5 million out of the project through a rug pull scam.
Source: Bits
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