The SEC Just Launched a Fake ICO Website to Educate Investors
The U.S. Securities and Exchange Commission would like to make sure investors can spot fraudulent initial coin offerings – even when it must launch it’s very own to achieve that. The ruler announced Wednesday that it has established an ICO called HoweyCoin, presumably named after the Howey Testthat “Requires an all too good to be true investment prospect”
However, the business notes, “the deal is not real.” Users who attempt to put money into the market will soon be redirected into the regulator’s schooling tools, which can be directed at pointing out that the indications of deceptive token sales.
As stated by the HoweyCoin site, many travel companies “demand processing, centralized money, and above all, dime and nickel fees which add up to literally countless”
HoweyCoin differs, the fake website states, because:
“HoweyCoins utilize the latest crypto-technology to allow travelers to purchase all segments without these limitations, allowing HoweyCoin users to buy, sell, and trade in a frictionless environment – where they use HoweyCoins to purchase travel OR as a government-backed, freely tradable investment – or both!”
The site goes on to report that traders can get 1-2 percentage yields, and guides them to “HODL,” mimicking sites for present fraudulent or potentially fraudulent nominal sales. The website similarly comprises Twitter testimonials and list of its group members, even though whether some of them are actual is problematic – there are not any social websites or professional profiles connected to the titles.
In a media release, the SEC also mentioned that the website includes “a white paper using a complicated yet obscure explanation of this investment possibility, claims of guaranteed returns, along with a countdown clock that reveals time is fast running out on the price of a life”
In a declaration, Owen Donley, chief adviser of the SEC’s Office of Investor Education and Advocacy, said the website integrates lots of the hallmarks of deceptive token revenue – related advice for investors seeking to avoid financial advantages.
“Fraudsters can easily assemble an attractive site and load it up with elaborate jargon to tempt investors into fraudulent deals,” said Donley. “But deceptive websites also frequently have red flags which could be dead giveaways for those who understand exactly what to search for.”