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HoweyCoins!By Amit Dudani | May 28, 2018, 2:51 p.m. GMT
The government is working hard to ensure you are cryptocurrency savvy and don’t get scammed and here’s how:
HoweyCoins: A hot new coin links luxury travel.
You are not going to earn anything but learn more about what crypto is and what risks/scams are involved.
This is all about the mock ICO formed by the Securities and Exchange.
This creation of SEC's office of shareholder education and advocacy intends to educate and make the public aware of the pros and cons of investing in cryptocurrencies.
If it sounds too good to be true, it most likely is.
The goal of the project is to notify investing novices of signs of fraud before it's too late.
"The rapid growth of the 'ICO' market, and its prevalent endorsements as a new investment opportunity, has provided productive ground for bad actors to take benefit of our core investors", said SEC Chairman Jay Clayton in a statement. "We clinch new technologies, but we also want investors to see what fraud looks like, so we created this educational site with many of the typical caution signs of fraud."
The site, HoweyCoins.com imitates a coin offering, announcing officially, "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 thrilling and definite returns of the travel industry."
When people click on "Buy Coins Now" intending to invest in this ICO, it will direct them to the investor education tools from the SEC and other financial regulators."Fraudsters can quickly build an eye-catching website and publish it up with complicated terminology to attract investors into fake deals", said Owen Donley III, chief counsel of the SEC's office of investor education and advocacy. "But fraudulent sites frequently have red flags that can be the dead steal, if you know what to look for."
The HoweyCoins site hits on numerous tell-tale signs of a scam. Guaranteed returns? Check. White paper with a vague explanation of the investment? Check. An anxiety-encouraging countdown? Check. Celebrity recommendations? Check.
While those characteristics don't essentially mean the offering is bogus, it's intelligent to be aware — and doubtful.
The website's name, HoweyCoins, is a bit of an investor inside joke. The name of this website refers to the Howey test that law enforcement and regulators use to determine the nature of a transaction, whether it’s an investment contract or not.
In a big 1946 US Supreme Court decision, SEC v/s. W.J. Howey Co., they declared that a transaction would be considered as an investment contract or security, if "a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party."
Investors should always be aware of how SEC successfully built Howeycoins in a surprisingly short frame of time and how vulnerable this system is to create a scam opportunity for anyone. Before any kind of investment can be made, it is very important to research that investment and have a deep knowledge of the people who sell them, their websites and other people investing in it.