The SEC created its own scammy ICO to teach investors a lesson
In its newest effort to fend off cryptocurrency scams, the Securities and Change Fee launched its personal pretend preliminary coin providing web site as we speak referred to as the Howey Coin to warn folks towards fraudulent cryptocurrencies. The title is a tongue-in-cheek reference to the Howey Check that the SEC makes use of to find out whether or not an funding is a safety, which the Fee would subsequently have authorized jurisdiction over.
Click on ‘Purchase Cash Now’ on the Howey Cash website and also you’ll be redirected to an SEC web page that states: “We created the bogus HoweyCoins.com website as an academic instrument to alert buyers to attainable fraud involving digital belongings like crypto-currencies and coin choices.” The SEC makes use of the web page to spotlight pink flags that clients ought to be careful for, together with a promise of excessive returns (which signifies excessive dangers), celeb endorsements, and even false claimes that an ICO is SEC-compliant.
It’s an elaborate stunt — the Howey Coin website even features a pretend white paper, which digital cash normally embrace to provide extra details about the actual forex and its underlying applied sciences. And the SEC went so far as creating pretend Twitter accounts for every of the “celebrities” that endorsed the Howey Coin. All in all, it’s a reasonably good pretend — if it have been actual, the web page would have possible satisfied no less than a number of unwitting buyers to sink their cash into Howey Coin.
Supply hyperlink – https://www.theverge.com/tldr/2018/5/16/17361750/sec-cryptocurrency-ico-investors