Security News > 2023 > February > New Dingo crypto token found charging a 99% transaction fee
Researchers at IT security company Check Point security have flagged Dingo Token as a potential scam after finding a function that allows the project's owner to manipulate trading fees up to 99% of the transaction value.
Dingo Token is currently ranked #619 in CoinMarketCap with a market capitalization of over $20 million.
Despite Dingo Token's rising popularity, its project's website doesn't contain much information about the owner, and the published "Tokenomics" white paper only mentions a 10% transaction fee.
According to Check Point, the source code contains a function called "SetTaxFeePercent," which enables the project owner to change it on the fly when someone buys or sells Dingo Tokens, receiving up to 99% of the amount.
Check Point says that in one case they observed, a user spent $26.89 to purchase 427 million Dingo Tokens but instead received 4.27 million, which is exactly 1%. 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.
BleepingComputer has found multiple reports from users that took it to social media to complain about trouble in swapping freely the tokens they have, with no response from the official Dingo Token accounts.