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Technology The SEC made a fake cryptocurrency to show you how ICO scams work

01:21  17 may  2018
01:21  17 may  2018 Source:   engadget.com

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The agency even put together a white paper about its fake coin. The site then goes on to describe a handful of red flags that signal a scam including claims of high, guaranteed In this article: business, Cryptocurrency , Fraud, gear, ico , internet, sec , SecuritiesAndExchangeCommission, security .

You are using an older browser version. Please use a supported version for the best MSN experience. The SEC made a fake cryptocurrency to show The agency even put together a white paper about its fake coin. The site then goes on to describe a handful of red flags that signal a scam including

a close up of a sign© Provided by Engadget

HoweyCoin, a new digital currency, was launched today through a pre-initial coin offering and the team behind it said it would be "the cryptocurrency standard for the travel industry." The HoweyCoin website offers a number of investment levels as well as various discounts depending on when you invest. However, when you click the "Buy Coins Now!" button, it takes you to an SEC website warning you of the strategies used by ICO scammers.

"We've recently seen fraudsters pretending to be involved in blockchain technology, initial coin offerings and crypto-currencies — when really they are simply operating scams designed to take investors' hard-earned money," says the site. "We created the bogus HoweyCoins.com site as an educational tool to alert investors to possible fraud involving digital assets like crypto-currencies and coin offerings." The agency even put together a white paper about its fake coin.

Facebook is reportedly considering its own cryptocurrency

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The agency even put together a white paper about its fake coin. The site then goes on to describe a handful of red flags that signal a scam including claims of high, guaranteed In this article: business, Cryptocurrency , Fraud, gear, ico , internet, sec , SecuritiesAndExchangeCommission, security .

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The site then goes on to describe a handful of red flags that signal a scam including claims of high, guaranteed returns, celebrity endorsements, claims of SEC compliance, ability to invest with a credit card and pump and dump schemes. Each of those elements were included in the fake HoweyCoin site and the SEC uses them to explain why they should alert potential investors. In regards to pumping and dumping, the SEC site says, "In a pump and dump scheme, fraudsters typically spread false or misleading information to create a buying frenzy that will 'pump' up the price of a stock and then 'dump' shares of the stock by selling their own shares at the inflated price. Once the fraudsters dump their shares and stop hyping the stock, the stock price typically falls and investors lose money."

SEC's fake coin offering site shows what scams look like

  SEC's fake coin offering site shows what scams look like HoweyCoins.com looks like a legitimate website letting investors get in on a digital-coin offering at a discounted rate if they act quickly.So who created it? The Securities and Exchange Commission.

The SEC made a fake cryptocurrency to show you how ICO scams workhttps://www.engadget.com/amp/2018/05/16/ sec - fake - cryptocurrency - show - how - ico - scams - work / …

The Securities and Exchange Commission has been warning investors about the dangers of initial coin offerings and the proliferation of scam ICOs for some time now. The regulator is apparently so concerned about educating on the issue

The SEC has been cracking down on cryptocurrencies and ICOs lately. It formed a Cyber Unit last year and has brought charges against a number of individuals hosting allegedly fraudulent ICOs. The agency also said it would be looking closely at companies that suddenly pivot to blockchain or cryptocurrencies.

Cryptocurrency stunt to climb Everest reportedly turns deadly .
A publicity stunt by a Ukranian social media network encouraging "crypto enthusiasts" to climb Mt. Everest and bury a hard drive holding $50,000 worth of digital tokens reportedly indirectly led to a man's death, according to the Financial Times.Ukrainian social network ASKfm, which is planning to raise money through an initial coin offering, or ICO, sponsored four people to climb Everest and bury the hard drive holding its digital tokens, which at this point have no proven value.

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