Dingo Crypto Token flagged as ‘Potential Scam’.
Instead of 10%, charging up to 99% as a transaction fee.
flagged Dingo Token(DINGO) as a ‘potential scam’.
It inspected a smart functional contract that allows the project's owner to alter the trading fees per transaction up to 99% of its transaction value.
This is alarming because the transaction fee of 99% when broken down is 95% tax and 4% liquidity fees, leaving the buyers with the remaining only 1%, to add to it there is absolutely no way to reverse the transaction.
One such case that caught wide attention, observed by the IT security firm was about an investor who spent $26.89 to purchase 427 million Dingo Tokens but instead received 4.27 million, or $0.27 worth of Dingo tokens.
This is contrary to Dingo Token's rising popularity, where the project's website doesn't contain much information about the owner, and the published "tokenomics" white paper only mentions a 10% (5% + 5%) transaction fee.
The Dingo Token is charging transaction fees up to 99% instead of the officially declared 10% through a code behind a backdoor function “setTaxFeePercent” that changes the contract’s buying and selling fees by up to 99%.
Researchers have already seen multiple fee changes on the Dingo Token network 47 times. While the 47 cases seen by Check Point aren't enough to impact the broader investors' base of Dingo Tokens, they could be a test run by the operator, who can apply the function change on all holders and cash out quickly when the token reaches its maximum price.
Take a look at the multiple reports from various social media platforms where users are claiming their troublesome experiences, ‘scam’, about swapping their tokens. There has been no response from the official Dingo Token accounts so far.
Before investing in any cryptocurrency project, it is important to research the token and the team behind it. Investigate incomplete data or insufficient information on the official website. It's also recommended to ask questions in the community to learn more about a project before investing.
If you're getting into this trading game, it is recommended to use only reputable exchange services like CoinDCX, WazirX, SunCrypto, and others. Also, diversifying investments across different coins could be a good strategy.
You can also read Crypto Trading is Now a Curable Addiction in a Spanish Rehab Center.