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The SEC just launched a fake cryptocurrency to educate investors on the dangers of ICO...

By Polycount ยท 13 replies
May 16, 2018
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  1. It seems the Securities and Exchanges Commission has taken the age-old mantra of "If you can't beat 'em, join 'em" to heart.

    As reported by The Verge, the Commission today launched a fake initial coin offering (ICO) website promoting what they call "HoweyCoins" - a clear reference to the Howey Test, which is a system the Commission uses to determine whether or not an investment falls under their legal jurisdiction.

    The website in question is certainly elaborate. The SEC created an official HoweyCoins logo, a Meet the Team page, fake user testimonials, and even a large "15% bonus" countdown timer.

    On the HoweyCoins website, the SEC claims the fake currency is "officially registered" with the US government and will trade on an "SEC-compliant exchange" where users can buy and sell the pseudo-cryptocurrency for profit.

    The website also claims the coins can be redeemed for merchandise, exchanged for other cryptocurrencies or cash and spent at "participating" airlines and hotels.

    Naturally, the SEC's goal with this website goes beyond simply pranking the public. In the wake of numerous cryptocurrency scams that have allowed creators of fraudulent cryptocurrencies to run off with millions of investor dollars, the SEC is clearly attempting to educate the public on avoiding these scams entirely.

    Indeed, if you click any of the "Buy Coins Now!" buttons on the HoweyCoins website, you'll be taken to an official informational SEC page where the Commission explains the fake website and gives visitors tips to dodge real scams in the future.

    Permalink to story.

     
  2. yRaz

    yRaz Nigerian Prince Posts: 2,645   +1,870

    This is what's going to happen. Just like Doge coin, it will get picked up by the community and it will increase in value. I'm not saying by much, but in this atmosphere of crypto fever people will jump onto anything.

    But, yeah, ICOs are scams. The thing is people just don't care
     
    Evernessince likes this.
  3. treetops

    treetops TS Evangelist Posts: 2,257   +354

    So they made an illegal website.... Eventually they would get caught like everyone else....
     
  4. Hexic

    Hexic TS Evangelist Posts: 409   +248

    If you read the article carefully, it states that the link to buy the currency redirects to an SEC informational page of how to AVOID these scams. No coins sold, no coins exist, no crime.

    You're missing the point entirely.
     
    shm0wie, Gerald L, jobeard and 3 others like this.
  5. senketsu

    senketsu TS Guru Posts: 817   +544

    I don't get your posts. There is no coin so how can it be 'picked up' plus it is not illegal, it's an educational page made by the Securities and Exchanges Commission.

    edit: I guess Hexic and I posted at almost the same time. Hexic post 7:09 my post 7:10
    sorry for the redundancy
     
    Last edited: May 17, 2018
    Gerald L likes this.
  6. Evernessince

    Evernessince TS Evangelist Posts: 3,179   +2,422

    Well yeah, when you can create money out of thin air you are going to attract all sorts of cretins. The fact that pump and dumps and all sorts of other usually illegal currency ploys are completely legal with Crypto-currency says enough. No one backs the money, no one stops manipulation, and no one can track it. The one thing that currency needs is control or else you end up like venezuela where bread costs more than your house after 7 years.
     
  7. Ravey

    Ravey TS Addict Posts: 132   +62

    You mean like what High Street banks have been doing for years? just creating money out of thin air...

    Cryptocurrency may not be tied to anything physical.. like gold for example.. but you have to remember that a lot of things we highly value are finite. take diamonds and gold and opals? theres only so much of the stuff available and its rare which is why they are highly valued. Cryptocurrency is exactly the same. The Algorithm that Bitcoin is based on is finite, you can only 'mine' so much of it. This is what gives cryptocurrency its value.

    To suggest that real cryptocurrency is made out of thin air is just plain wrong. It's a mathematical value that that cannot be duplicated.
     
  8. regiq

    regiq TS Addict Posts: 203   +80

    Basically it's made out of the resources used to create electricity. In a VERY inefficient way.
     
    senketsu likes this.
  9. shm0wie

    shm0wie TS Member Posts: 19   +17

    It's amazing how people comment on the article without fully reading it.
     
  10. Ravey

    Ravey TS Addict Posts: 132   +62

    Or maybe people are just expanding on the conversation that has evolved from the original article? You are more than welcome to express your own opinions on the subject too. It can be more constructive than just criticising others.
     
    regiq likes this.
  11. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,612   +1,098

    Nope, some are just replying for the sake of it with questions and dumb comments that can be literally be quoted on them from the article.

    I had the hoped that by making fun of them for not reading they would actually read next time... or at any point... high hopes high hopes...
     
    Gerald L likes this.
  12. jobeard

    jobeard TS Ambassador Posts: 12,355   +1,388

    Oh well, back to the article ...

    IMO this is a great approach to educate all kinds of users, including investors on the necessity of personal investigation before jumping to the fray. Eye candy and comments are not indicative of anything meaningful, so background research is mandatory.

    Sadly there's a small population of trolls on TS that P*** and moan on everything and contribute nada, zippo, zilch of any positive contributions.
     
    regiq likes this.
  13. Evernessince

    Evernessince TS Evangelist Posts: 3,179   +2,422

    You do realize that the supply of diamonds is 95% controlled by a single company right? Thank you for proving my point.

    "You mean like what High Street banks have been doing for years? just creating money out of thin air..."

    You are naive if you think that's what's been the problem.
     
  14. Ravey

    Ravey TS Addict Posts: 132   +62

    I apologise if you felt I was attacking you over your comments, That wasn't my intention. The high street bank comment was just a poor attempt at humour, next time I'll remember to put 'joke' or 'lol' at the end of it. I also wasn't trying to prove or disprove your opinion. I am only trying to convey my opinion which in this case, does not agree with you.

    Cryptocurrency presently has no single organisation controlling it, does that mean it shouldn't be trusted? True, cryptocurrency is a very high risk market, However Cryptocurrency will not be totally uncontrolled forever. eventually you will end up with one or more likely, several powerful organisations that will control the majority of the digital currency. It's from that point you will start seeing more control and regulation over the digital currency.

    It probably won't be perfect control, you will always have fakes and forgeries and scammers trying to con you out of your own cash and investments. That's no different to real money, you get fake notes, coins, gold, diamonds so trading in 'real' commodities is just as dangerous.

    This brings us back to the point of the article and the importance of raising awareness of forgeries in form of digital currency.
     

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