SEC with educational purposes has launched a fake website ICO
The Commission on securities and stock exchanges of the USA (SEC) intends to teach investors to recognize fraudulent ICO. For this, the regulator has prepared a special "fake" website.
May 16, the SEC announced the launch of the project HoweyCoin simulating a real ICO. The name of the project was in honor of Howie test — the legal test used in American jurisprudence to determine whether a particular tool or a commercial operation to investment contracts and, therefore, securities.
Warns the Commission HoweyCoin is not a real ICO project. Users attempting to invest in tokens, the website redirects to an educational section, where you can learn about the signs of fake ICO.
Description HoweyCoin very tempting and may seem convincing. On the website of this "licensee" says that most of the tourist companies "in need of processing, centralized currency and, most importantly, low commissions, which in total will give literally billions".
Have HoweyCoin, as stated, there are a number of differences from the competition:
HoweyCoin uses the latest cryptologia, allowing tourists to buy all the necessary services without restrictions, and users HoweyCoin — freely buy, sell and trade. For tokens HoweyCoin they can buy the trip, and they can just buy a token as a freely traded and government-backed investment.
Further, the site reported that investors will get profit in the amount of 1-2%. They suggest hadlich to hold assets for a long time. Such statements and tips typical of the fraudulent sites ICO. The SEC website also contains "evidence" of Twitter users and the list of members of the project team, although it is unknown whether these people are: these are not accompanied by social media accounts or professional profiles.
In a press release, the SEC noted that the site includes "white paper with a complex and vague explanation of investment opportunities, promises of guaranteed profits and a countdown clock which show that the acquisition of the whole life time".
Chief adviser of the Department of education and the protection of investors, SEC Owen Donley said that the website includes many features of fake projects ICO, and this information is relevant to investors seeking to avoid financial traps. In particular, Donley said
With colorful web sites, teeming with sophisticated technical terms, the fraudsters persuade investors to commit fictitious transactions. However, such sites often contain claims and elements that immediately give them, if you know what you should pay attention.