The Securities and Exchange Commission (SEC) launched a hoax Initial Coin Offering website. The imitation website designed to educate users and warns cryptocurrency investors of the dangers of fake ICO websites.
Legitimate ICO’s designed to provide startups with capital to promote growth are subject to scams and data breaches. These criminal schemes leave investors with less money than they should ordinarily have.
The SEC follows different companies issuing subpoenas and requesting information in a bid to find those conducting ICO exit scams. The agency decided not only to locate such fraudulent companies but to educate investors about such scams.
HoweyCoins, the hoax website claims it combines blockchain technology and travel and that it will partner with all segments of the travel industry.
The website offers a number of benefits to users including the exchange of coins for cryptocurrencies and cash and redeeming coins for merchandise.
SEC Demonstrates Potential Indicators Of Scam With HoweyCoins Whitepaper
The downloadable white paper shows more ways that investors can distinguish between a fake and real ICO website. The website lures investors with holiday discounts and savings of 30 to 40 percent of HoweyCoins future values.
HoweyCoins offers a bonus percentage and the paper promises riches that are not certain. The SEC warns investors who click the link to buy coins of possible dangers of fake ICO websites.
Jay Clayton, the SEC Chairman states that the website is created so investors can “see what fraud looks like,” […] and have an idea of the “many of the classic warning signs of fraud.”