SEC Encourages Investor Protection Through Parody ICO

Lloyd Doyle
May 17, 2018

The SEC (The US Securities and Exchange commission) has today announced an intriguing new initiative created to educate investors about fraudulent ICOs.

This latest project from the SEC involves a bogus ICO that advertises an investment opportunity that, as the website explains, is "too good to be true".

Once on the page, the warning signs of a fake ICO are highlighted in red and include particulars like celebrity endorsements, high returns, regulatory compliance and options to pay with a credit card. "These savings will be passed on to you and the earlier you get in on the HoweyCoins ICO the greater the discounts are going to be". One of these, @boxingchamp1934, appears to be poking fun at Floyd Mayweather, who endorsed a fraudulent ICO that exit scammed after raising $32mln. The webpage is an in-house SEC project they were able to construct in relatively little time.

Nevertheless, SEC Chief Counsel, Owen Donley, detailed how fraudsters "can quickly build an attractive website and load it up with convoluted jargon to lure investors into a phony deal". At first glance, the website looks very similar to any ICO website.

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Combining the two most growth-oriented segments of the digital economy - blockchain technology and travel, HoweyCoin is the newest and only coin offering that captures the magic of coin trading profits AND the excitement and guaranteed returns of the travel industry. When clicking through there is even a white page and a list of (fake) celebrity investors but when the Buy Coins Now button is clicked the user is brought to a page outlining the scam.

Howeycoins arrived after a tense period of mixed signals from the US' lead financial regulator, and SEC Chairman Jay Clayton has repeatedly warned investors against cryptocurrencies and exchanges. For all of these reasons and more, HoweyCoin's illustrious team expects a modest return of 1% to 2% ROI per day.

In a statement, Owen Donley, chief counsel of the SEC's Office of Investor Education and Advocacy, said that the site incorporates numerous hallmarks of fraudulent token sales - pertinent information for investors looking to avoid financial pitfalls.

Other reports by Iphone Fresh

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