The SEC Just Launched a Fake ICO Website to Educate Investors

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The U.S. Securities and Exchange Commission would like to ensure investors may spot fraudulent preliminary coin offerings – even when it’s to launch its own to do so. The regulator announced Wednesday it’s launched a mock ICO named HoweyCoin, probably named after the Howey Test, which touts an all too good to be true investment opportunity.” . Nevertheless, the business notes, the offer is not real. Users who attempt to invest in the token sale will instead be redirected to the regulator’s education tools, that are aimed at pointing out the signs of a fraudulent token sales. In accordance with the HoweyCoin web site, most travel companies require processing, centralized currency, and above all, nickel and dime fees which add up to literally billions.” .

HoweyCoin differs, the fake site states, because: HoweyCoins use the most recent crypto technology to allow travellers to buy all sections without these limitations, permitting HoweyCoin consumers to purchase, sell, and trade in a frictionless environment – where they utilize HoweyCoins to buy traveling OR as a government backed, publicly tradable investment – or both!” . The web site goes on to report that investors will get 1-2 percent yields, and advises them to HODL, mimicking web sites for an existing fraudulent or potentially fraudulent token revenue. The site similarly comprises Twitter testimonials and a list of its team members, however whether some of them are real is debatable – there’s aren’t any social network or professional profiles connected to the names.

In a media release, the SEC also mentioned that the site involves a white paper with a complicated still vague explanation of the investment opportunity, promises of guaranteed returns, and a countdown clock which shows time is rapidly running out on the deal of a life.” . SEC emblem via CoinDesk archives. The leader in blockchain information, CoinDesk is a media store that strives for the highest journalistic standards and adheres to a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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