During last bull run, the United States’ Securities and Exchange Commission launched a mock ICO website to educate investors on how they can easily identify deceitful coin offerings and distinguish them from real ones. Intelligent fraudster stars can easily create an attractive website and fill it with complicated verbiage which they use to easily lure unsuspecting investors into deceptive deals. The purpose of the website hence was to enlighten the investors on how to go about in case they are found in such situations to avoid letting their cash and investment land in the wrong hands.
The mock ICO website
The fake Initial Coin Offering website launched was named Howeycoin, seemingly being named after the ‘Howey test’ which flaunts an all too good to be true investment opportunity. The website presents itself as a real website and investors can easily fall for it by the way it advertises itself. It explains itself as a combination of two most growth-oriented segment of the digital economy – Travel and Blockchain technology. It is the latest in the market and has all the tricks investors should use to profiteer in coin trading business.
Howeycoin will form partnerships with all segments of the travel industry including hotel, air, and luxury and car rental segment and hence investors are guaranteed of profitable returns from the lucrative sector. It also provides the option of trading the coins for profit instead of points.
Investment strategy
Interested parties can acquire Howeycoins by purchasing them using TravExcoins, any major credit card or any widely circulated coin. The latest survey indicates that the travel and luxury industry- our biggest prospective partner is set to reach a staggering high record of $ 1.5 trillion this fiscal year. Such business requires processing of centralized currencies with valuables like dime and nickel fees totaling to billions. Using the latest crypto-technology, Howeycoin will enable these users to transact in a smooth and friction free environment.
The catch
The regulator, however, notes with concern that ‘the offer is not real’. As a consequence, any investor who tries to buy the Howeycoin will be redirected to the education tools segment which has been designed to point out and educate the user on the signs which indicate that a token sale is fraudulent. The site also incorporates most of the symbols of duplicitous token sales which are crucial information for all investors that are keen on avoiding financial traps.
