Dingo crypto token flagged as scam over 99% transaction fee backdoor

The research arm of cybersecurity software firm Check Point has flagged the Dingo Token (DINGO) as a “potential scam” after reportedly discovering a smart contract function that has been used to manipulate transaction fees.In a Feb. 3 blog post, Check Point Research (CPR) said it looked into the code behind the Dingo Smart Contract, discovering a backdoor function “setTaxFeePercent,” which can change the contract’s buy and sell fee up to 99%.This is despite the project’s whitepaper stating that there is only a 10% fee per transaction.An example of the smart contract function being used to manipulate transaction fees. Source: Check Point ResearchAccording to CPR, this essentially allows the project’s owner to withdraw up to 99% of the transaction amount whenever a user buys or sells the token.In one case the cyber security software firm observed a user who spent $26.89 to purchase 427 million Dingo Tokens but instead received 4.27 million, or $0.27 worth of Dingo Tokens.An example of a user only receiving 1% of the transaction’s value. Source: Check Point ResearchThe firm said it decided to investigate the Dingo Token project after seeing the token rise 8,400% this year, and found at least 47 instances of the function being used to allegedly scam token investors. “We all know that 2022 was a hard year in the crypto market. However, when we saw a token raised by 8400% this year, we had to investigate the project and understand what was unique about it. We examined the Dingo Smart Contract and quickly found it seemed like a scam,” it wrote. Check Point Research (CPR) has found at least 47 instances of the smart contract function being used. Source: Check Point ResearchThe firm also pointed to the Dingo Tokens website, noting that it has “no real information about the owners of the projects,” other than a four-page whitepaper. “If you’ve incorporated crypto into your investment portfolio or are interested in investing in crypto in the future, you should make sure to only use known exchanges and buy from a known token with several transactions behind it,” wrote the research firm.As of writing, Dingo Token is ranked 298 on CoinMarketCap with a live market cap of $82,555,168.Related: Sneaky fake Google Translate app installs crypto miner on 112,000 PCsCointelegraph reached out to the creators of Dingo Token for a response to the allegations but has yet to receive a reply before publication.Users of Twitter and CoinMarketCap have also recently reported issues with the Dingo Token. Crypto trader IncredibleJoker said they could not sell their holdings in a Feb. 3 post.@DingoToken when can I sell your scam coin?? My shit is worth $26,000 and I can’t sell any of them!!!!!!!!!!!— IncredibleJoker (@IncredibleJ0ker) February 5, 2023Dingo Token responded to the user’s Twitter post, asking the user to message them privately, but no further updates have been made public. While on CoinMarketCap, user mraff1579 appeared to reference the backdoor function raised by CPR. “Wow dont lislisten to send to new wallet they took 30 billion coins and only received 300 mil because of fraudulent tax wow ppieces of Shit. . I was going to send to deployed for coin but got screwed , pretty sure anything you do will result in lost of 99%,” the post said.

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What is the global financial crisis and its impact on the global economy

When the financial system or the economy as a whole undergoes a rapid and large decline, it is said to be in a financial crisis. Financial assets like stocks, bonds, and real estate often see a sharp and significant decline in value during financial crises. They can also be identified by a decline in credit availability and a loss of faith in financial institutions like banks.Related: DeFi vs. CeFi: Comparing decentralized to centralized financeFinancial crises can be caused by a variety of factors, including:Overleveraging: When people, businesses, and governments take on excessive debt, they put themselves at risk of a financial collapse.Asset price bubbles: When the cost of an asset, such as a home or stock, rises quickly, it can lead to a financial crisis when the price falls sharply.Bank runs: When enough customers attempt to withdraw money from a bank at once, the institution may become insolvent and shut down, triggering a financial crisis.Financial institution mismanagement: Financial institutions that are poorly managed may become bankrupt or fail, which could trigger a financial catastrophe.Economic recessions: A financial crisis can result from an economic recession, which is defined by diminishing economic activity and growing unemployment.This article will discuss the global financial crisis (GFC) of 2007-08, its main causes, and how the financial crisis impacted the economy.What is a global financial crisisThe global financial crisis of 2007–2008 was a major financial crisis that had far-reaching impacts on the global economy. A housing market bubble, unethical subprime mortgage lending practices, and the overproduction of sophisticated financial products like mortgage-backed securities all contributed to its cause.The subprime mortgage market in the United States, specifically, served as the catalyst for the 2007–2008 global financial crisis. Loans with risky lending terms and high interest rates were given to borrowers with bad credit records under the phrase “subprime mortgages.” A housing market bubble in the US was brought on by the rise in subprime mortgage loans and the subsequent marketing of these loans as securities. Many borrowers were unable to make mortgage loan payments when the housing bubble eventually burst and prices started to plummet, which sparked a wave of foreclosures. The value of mortgage-backed securities decreased as a result, and the global financial system experienced a liquidity crisis, which set off the GFC of 2007–2008.Due to the crisis, home prices significantly dropped, there were a lot of foreclosures, and the credit markets were frozen. This in turn sparked a financial crisis that required government intervention and bailouts, as well as a global recession. The crisis’ effects were felt on a global scale, causing widespread economic distress as well as a fall in employment and economic growth.What are the main causes of the global financial crisisThe financial crisis spread quickly over the world as a result of the financial markets’ globalization and the links between financial institutions and nations. The following are the primary reasons for the global financial crisis of 2007–2008:Subprime mortgage lending practices: Banks and other financial institutions made riskier loans, referred to as subprime mortgages, to consumers with bad credit. These loans were frequently packaged and offered for sale as securities, which inflated the housing market.Lack of regulation: The absence of regulations in the financial sector led to the emergence of complicated financial products that were challenging to evaluate and comprehend, such as mortgage-backed securities, credit default swaps, and risky lending practices.Housing market bubble: In the US, a housing market bubble was brought about by subprime mortgage lending combined with the marketing of these debts as securities. Housing values decreased as the bubble eventually burst, and many borrowers found themselves unable to make mortgage loan payments.Credit market freeze: Credit markets became frozen as a result of the decrease in the value of mortgage-backed assets, making it impossible for financial institutions to acquire capital and resulting in a liquidity crisis.Related: How Security Tokens Can Prevent an Impending Financial CrisisWhat are the consequences of the global financial crisisThe consequences of the global financial crisis of 2007–08 were far-reaching and long-lasting. Some of the most significant impact of global financial crisis on world economy include:Economic Global recession brought forth by the crisis was defined by a sharp decline in economic activity, dropping output, and rising unemployment.Several sizable financial institutions failed as a result of the banking crisis, which necessitated government intervention in the form of bailouts and recapitalizations.Housing price decline: The US housing price slump that caused a large drop in household wealth and a wave of widespread foreclosures served as the crisis’s catalyst.Rise in public debt: Public debt increased as a result of numerous governments’ interventions to maintain their financial and economic systems.Political repercussions: The crisis led to a decline in confidence in the government and financial institutions and fueled the emergence of populist and anti-globalization views.Financial sector reforms: The crisis led to significant changes in the financial industry, such as more rules and oversight, which are intended to lower the likelihood of future financial crises.Was Bitcoin a response to the global financial crisis of 2007–08?Bitcoin was partially created as a response to the global financial crisis of 2007-08. The financial crisis brought to light the weaknesses of the established financial system and the risks of reliance on centralized financial institutions. The creator(s) of Bitcoin (BTC), who went by the alias Satoshi Nakamoto, created the digital currency with the intention of building a more secure and stable financial system that was not vulnerable to the same kinds of hazards as the conventional financial system. The invention of Bitcoin and the emergence of cryptocurrencies and blockchain technology that followed are considered a rejection of the existing financial system and a direct response to the negative effects of the global financial crisis of 2008.The public ledger that contains records of every transaction on the Bitcoin network makes it simpler to track and keep tabs on the movement of money. This aids in the suppression of dishonest behaviors, including insider trading, market manipulation, and other unethical actions.

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Starkware commits to open source its ‘magic wand’ Starknet Prover

Ethereum layer 2 scaling solution StarkWare announced plans to open source its proprietary Starknet Prover under the Apache 2.0 license, which has processed 327 million transactions and minted 95 million nonfungible tokens (NFTs) to date. The prover is the crucial engine Starkware uses to roll up hundreds of thousands of transactions and compress them into a tiny cryptographic proof written on the Ethereum blockchain.“We think of the Prover as the magic wand of Stark technology. It wondrously generates the proofs that allow unimaginable scaling,” said Eli Ben-Sasson, president and co-founder of Starkware.Eli Ben-Sasson presenting at the Starkware sessions 2023. Source: CointelegraphStarkware has faced criticism from the crypto community and competing solutions such as ZK Sync and Polygon for holding onto the IP behind its tech, which contradicts blockchain’s open source and interoperable ethics. Making the prover open source under the Apache 2.0 license will enable any other project or network — or even games or database developers — to make use of the technology, edit the code and customize it. The tech was released in 2020 and is already being used by ImmutableX, Sorare and dYdX.A sneak peek of the Starkware sessions 2023. Source: CointelegraphAvihu Levy, Starkware’s head of product, was reluctant to commit to a time frame for open-sourcing the prover but said it would occur after the token launch and decentralization of Starknet itself. He agreed, however, that it would be possible this year. “We want to move forward with a decentralized, permissionless network and that means that you need to have this critical component out there,” he revealed speaking to Cointelegraph.Levy said the decision to open source the prover showed Starkware was increasingly confident about its technology and said it would also enable projects to be more confident about using it as a crucial part of their protocols. “In StarkEx, it’s sometimes considered vendor lock-up or lock-in. So the commitment wasn’t just a business commitment it was a technology commitment to StarkEx,” he explained. “This is a strong signal that you will have everything you need to run it yourself independent of Starkware.”Starkware has already open-sourced its programming language and EVM competitor Cairo 1.0, Papyrus Full node and is in the process of open-sourcing its new sequencer. Related: StarkNet overhauls Cairo programming language to drive developer adoptionBen-Sasson launched the Starkware Sessions conference in Tel Aviv on Sunday, which organizers said was the largest layer 2 conference held so far. “This is a landmark moment for scaling Ethereum,” he told about 500 developers and guests. “It will put Stark technology in its rightful place, as a public good which will be used to benefit everyone.”

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SBF bail guarantor to go public, UK crypto framework and Celsius news: Hodler’s Digest, Jan. 29 – Feb. 4

Top Stories This Week

SBF’s $250M bail guarantors should be made public, rules judge

The identities of two individuals who helped former FTX CEO Sam Bankman-Fried with his $250 million bail bond could be revealed next month following a recent ruling by United States District Judge Lewis Kaplan. Bankman-Fried’s legal counsel has until Feb. 7 to contest the decision. As bankruptcy proceedings continue, FTX and affected parties have requested subpoenas for information and documents from close relatives of Bankman-Fried, claiming not all members of his inner circle have responded to requests for information. Other recent news includes Alameda Research suing bankrupt crypto lender Voyager Digital in an attempt to claw back $445.8 million in loan repayments made before FTX collapsed.

UK Treasury publishes crypto framework paper: Here’s what’s inside

The United Kingdom’s HM Treasury published a long-anticipated consultation paper for its upcoming crypto regulation. The document covers a broad range of topics, from algorithmic stablecoins to nonfungible tokens to initial coin offerings. The authority aims to level the playing field between crypto and traditional finance by incorporating digital assets into the U.K.’s Financial Services and Markets Act 2000.

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Celsius publishes list of users eligible to withdraw majority of assets

Bankrupt crypto lending firm Celsius came up with a withdrawal process for users who had funds in its custody in June 2022, when the company ceased withdrawals. Celsius released an official update on upcoming withdrawals, providing the list of users eligible to access approximately 94% of qualified custody assets. Users will also receive specific details related to gas and transaction fees associated with the upcoming procedures.

Silvergate faces DOJ investigation over FTX and Alameda dealings

Crypto bank Silvergate is being probed by the United States Department of Justice fraud unit over its involvement with the bankrupt FTX exchange and its affiliates. Investigators are trying to find out how deep the FTX and Alameda Research dealings went with the California-based bank. According to Silvergate, Alameda opened an account in 2018, before the launch of FTX. Silvergate was heavily impacted by the collapse of FTX in November, reporting a $1 billion loss last quarter.

Meta CEO Zuckerberg steadfast on metaverse plans despite $13.7B setback

Mark Zuckerberg, CEO of Meta, said the company plans to remain committed to its long-term strategy for the metaverse despite its Reality Labs business suffering operating losses amounting to $13.7 billion in 2022 — the largest ever yearly losses recorded for its metaverse-building division. The company’s overall revenue for the fourth quarter was $32.1 billion, surpassing Wall Street expectations.

Winners and Losers

At the end of the week, Bitcoin (BTC) is at $23,572, Ether (ETH) at $1,661 and XRP at $0.40. The total market cap is at $1.09 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Render Token (RNDR) at 94.86%, dYdX (DYDX) at 45.84% and ImmutableX (IMX) at 43.41%.The top three altcoin losers of the week are UNUS SED LEO (LEO) at -12.30%, eCash (XEC) at -5.50% and Toncoin (TON) at -5.30%.For more info on crypto prices, make sure to read Cointelegraph’s market analysis.

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Most Memorable Quotations

“Regulators rightfully will scrutinize this industry much, much harder, which is probably a good thing, to be honest.”

Changpeng “CZ” Zhao, founder and CEO of Binance

“The fact that both the SEC and CFTC took action against market manipulation by an alleged rogue trader is a credit positive for the industry as a whole.”

Cristiano Ventricelli, assistant vice president of decentralized finance at Moody’s Investor Service

“None of the signals that I’ve seen so far suggest that we should shift the Reality Labs strategy long term.”

Mark Zuckerberg, founder and CEO of Meta

“Behind the scenes, Celsius conducted its business in a starkly different manner than how it marketed itself to its customers in every key respect.”

Shoba Pillay, former federal prosecutor and partner at Jenner & Block

“We believe that Bitcoin mining is being unfairly targeted and double-taxed by the IRS, currently.“

Dennis Porter, CEO of Satoshi Action Fund

“[Bitcoin is] not an effective store of wealth. But we are in a world where money as we know it is in jeopardy.”

Ray Dalio, billionaire investor and entrepreneur

Prediction of the Week 

$25,000 Bitcoin now ‘crowded trade’

The Federal Reserve raised interest rates by 0.25% this week, in line with almost all expectations, leading the BTC/USD pair spiking above $24,000 for the second time in as many days, with market participants still hopeful for a trip to $25,000 before a more significant retracement.“BTC has had a clean breakout above its macro downtrend line + a backtest,” investment research resource Game of Trades stated on Twitter, adding that “the next big resistance to clear is the $25k region.”

Pseudonymous trader Crypto Tony acknowledged that the target may no longer materialize. “$25,000 is my main target, but I am seeing now a lot of people asking for this, and is becoming a crowded trade,” he wrote.

FUD of the Week 

BonqDAO protocol suffers $120M loss after oracle hack

Decentralized autonomous organization BonqDAO has suffered a smart contract exploit that led to millions of dollars being stolen via an oracle hack that allowed the exploiter to manipulate the price of the AllianceBlock (ALBT) token. An independent analysis from blockchain security firm PeckShield has estimated the loss to reach $120 million, comprising $108 million from 98.65 million Bonq Euro (BEUR) tokens and $11 million from 113.8 million Wrapped AllianceBlock Tokens (WALBT).

Bithumb owner arrested in South Korea over alleged embezzlement

A man suspected of being the real owner of South Korea’s largest crypto exchange, Bithumb, has been arrested for embezzlement. According to prosecutors, he and his brother, head of Bithumb affiliate Inbiogen, colluded to embezzle corporate funds and manipulate the stock prices of Inbiogen. Among other headlines, Spanish authorities have arrested the CEO of Hong Kong cryptocurrency exchange Bitzlato in a joint effort between France, Portugal, Cyprus and United States law enforcement.

Kraken shuts down Abu Dhabi office, suspends support for AED

Crypto exchange Kraken has closed its Abu Dhabi office less than a year after receiving regulatory approval to operate in the region. According to the company, existing users will still have access to the platform using other fiat currencies. Several employees are also expected to remain in the area. The move in the Middle East comes after Kraken announced plans to cut its workforce by 30% — more than 1,000 people — in an effort to survive the crypto winter.

Best Cointelegraph Features

Is the Metaverse really turning out like ‘Snow Crash’?

Snow Crash foretold many of the issues with the Metaverse back in the 1990s. Here are some of the problems that still need to be solved.

Tiffany Fong flames Celsius, FTX and NY Post: Hall of Flame

Tiffany Fong stumbled into Twitter fame after getting burned in the Celsius bankruptcy. She says she has no idea where it will lead.

Why are crypto fans obsessed with micronations and seasteading?

From repurposed cruise ships like MS Satoshi to the blockchain-governed Liberland and Satoshi Island, crypto fans are trying to create utopian new communities built around new rules.

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Cointelegraph Magazine writers and reporters contributed to this article.

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The world must take a ‘collective action’ approach to regulations – suggests India’s Finance Minister

India’s Finance Minister, Nirmala Sitharaman, suggested that regulation “cannot be done” by a single country, it requires an international effort, in a recent television interview.Speaking to Rahul Joshi on CNBC-TV18 in India on Feb. 3, Sitharaman noted that while the central bank is the “authority for issuing cryptocurrency,” the rest of the digital assets created outside are “using very useful financial technologies.”Sitharaman said that India is looking at a “global” standard operating procedure (SOP) to be “agreed upon” for regulating crypto assets, ahead of India hosting the G20 Finance Ministers and Central Bank Governors meeting in Bengaluru later this month.She suggested that for crypto regulations to be effective it requires global consensus. She noted:“Regulation cannot be done by any one country singularly, it has to be a collective action because technology doesn’t group any borders.”Related: India cooperates with IMF on crypto consultation paperThis comes after the news that Sitharaman didn’t mention any changes to income tax laws in relation to crypto, central bank digital currency or blockchain technology in the union budget on Feb. 1.There have been numerous developments on crypto regulations by various countries within the G20 in recent times.The Australian Treasury released a consultation paper on Feb. 3 on “token mapping.” Despite the paper not providing any legislative initiatives, its authors suggested tailoring existing laws for a large portion of the crypto ecosystem.The Bank of France’s governor Francois Villeroy de Galhau stated during a speech in Paris on Jan. 5 that France shouldn’t wait on EU crypto laws, and instead take action on licensing “as soon as possible.”Brazil and Argentina are having their own discussions about creating a “common currency” together, in order to reduce dependance on the U.S. dollar.Meanwhile Huang Yiping, a former member of the Monetary Policy Committee at the People’s Bank of China (PBoC), believes that the Chinese government should reconsider its ban on cryptocurrency trading, suggesting it may not be sustainable in the long run.

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