Altcoin fans have been warned that a popular new token is a scam designed to charge users a stealthy 99% transaction fee.
According to Dingo Token’s four-page white paper, the crypto only charges a 10% fee per transaction.
However, as reported by Info Security Magazine, researchers have discovered a backdoor that appears to have been put in place to “steal users’ funds.”
Check Point has uncovered hidden functionality on the token’s smart contract that allows developers to manipulate its “setTaxFeePercent” function to add a 95% “tax fee” and a 4% “liquidity fee.”
According to Check Point, the functionality has been used 47 times previously and, at the point it carried out its research, the tax fee was set to 99%.
Head of product vulnerabilities research at Check Point, Oded Vanunu, told Info Security:
“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.”
He added, “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.”
Dingo Token is currently plummeting, shedding 99.8% of its value in the past 24 hours.