The SEC Recently Launched a Fake ICO Website to Educate Investors

The U.S. Securities and Exchange Commission intends to guarantee investors can distinguish fake initial coin offerings - regardless of whether it needs to launch its own ICO to do as such.

The regulator declared Wednesday it launched a test ICO called HoweyCoin, probably named after the Howey Test, which "touts a very decent to be genuine investment opportunity."

In any case, the organization notes on the website that, "the offer isn't real." Users who attempt to put money into the token deal will rather be diverted to the regulator''s educational tools, which are put for pointing out the indications of deceitful token sales.

As per the HoweyCoin site, most travel companies "require processing, national currency, and above all, nickel and dime charges that signify truly billions."

HoweyCoin is unique, the mock site says, in light of the fact that:

"HoweyCoins use the most recent cryptocurrency technology to enable travellers to buy all fragments without these restrictions, enabling HoweyCoin users to purchase, offer, and trade in a frictionless society - where they utilize HoweyCoins to buy travel OR as a government backed, openly tradable investment - or both!"

The site goes ahead to report that investors will get 1-2 percent returns, and encourages them to "HODL," copying sites for existing fake or conceivably fake token sales. The site comparably includes Twitter testimonials and rundown of its team members, however whether any of them are genuine is easily proven wrong - there are no social network websites or professional profiles connected to the names.

In a public statement, the SEC likewise noted that the site incorporates "a white paper with a complex yet dubious clarification of the investment opportunity, guarantees of ensured returns, and a countdown time that shows time is rapidly running out on the investment of a lifetime."

Sources

https://www.coindesk.com/the-sec-just-launched-a-fake-ico-website-to-educate-investors/