The US Securities and Exchange Commission is responsible for protecting investors from potential market fraud. With the emergence of crypto-currencies, a new form of fundraising has emerged, the ICOs. With nice promises, investors often try and are often ripped off. The SEC has long warned investors about the risks of ICOs. And to show how easy it is to get scammed, the SEC has implemented a fake ICO.
HoweyCoins, the informative program of the SEC
HoweyCoins is a cryptocurrency invented from scratch by the SEC to educate investors about the traps that some companies are implementing.
HoweyCoins was announced as the cryptographic currency issued by The Securities and Exchange Commission. At its launch, it was announced as a golden opportunity, “Do not miss this exclusive opportunity to contribute to HoweyCoins travel Network now”.
In its 8-page white paper, HoweyCoins presents itself as a precursor to the digital revolution in the travel industry and the reference in the field.
“Travel is expensive, but we are at the dawn of a revolution that will democratize travel and recreation for everyone. Internet was the first part of the revolution, the other part is Blockchain technology and crypto-currencies.
Added to this, to appear more convincing, the site contains recommendations from famous people, photos of luxurious destinations. HoweyCoins would be interesting if you want to invest in the long term.
“We also expect a minimum annual growth of 7 to 15%, making HoweyCoins attractive for long-term investments.”
The Howeycoin.com website shows that the pre-ICO sale is live with a 15% bonus that ends soon. With its different promises and a well-designed site, it’s hard to imagine that it’s a fake ICO. When the investor has finally decided to tap “Buy Wedges Now!” He will be redirected to investor.gov, the SEC website. On the site, the SEC warns of fraudulent ICOs by showing signs that will tip the ear and offering practical advice.
ICO, one of the biggest threats
Although there are many promising projects, the number of SCAMs is also important. SEC’s Jay Clayton said the SEC supports innovation, but also encourages investors to “educate and understand how fraudulent bids come up.” He stated that:
“Blockchain technology can add efficiencies to the fundraising process, but issuers and developers need to ensure they are in compliance with securities laws. I encourage investors to be diligent and ask questions. “
Earlier in the week, at a SEC oversight hearing, Steve Peikin, Co-Director, Chief Advisor, SEC Education and Investor Awareness Office, Owen Donley, said the situation shows how easy it is to set up a scam. The app told members of Congress that ICOs are now among the biggest threats to investors.
Since the beginning of the year 2018, the SEC has dealt with many cases, we can mention the case of Arise Bank and that of Centra. Last April, one of the founders of Centra Sohrab “Sam” Sharma was arrested when he was getting ready to fly. According to the SEC, the ICO set up was not registered with the agency and went against several rules.
In this case, investors will learn that the stars and trading platforms can not be trusted because Centra (CTR) was promoted by the Binance platform itself, and had the support of Floyd Mayweather , the former world boxing champion, and the famous DJ Khaled.
Before embarking on an investment, it will be necessary to inform oneself beforehand and to be realistic. According to the SEC, one should always be wary of offers that are too good to be true.