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SEC Encourages Investor Protection Through Parody ICO

ETHNews has a strict coverage of now not reporting on preliminary coin choices (ICOs) whilst they’re in development, however even we couldn’t move in this alternative.

On Wednesday, the Securities and Exchange Commission’s Office of Investor Education and Advocacy launched a ridicule preliminary coin providing (ICO) website, entire with a nine-page whitepaper, a suspicious set of founders, and overzealous celebrity endorsements. The company billed “HoweyCoin” – an ode to the Howey Test – as “the most recent and handiest coin providing that captures the magic of coin buying and selling income AND the thrill and assured returns of the trip trade.”

However, when possible buyers click on on some of the web page’s exuberant “Buy Coins Now!” hyperlinks, they’re redirected to a web page on investor training.

“We’ve just lately noticed fraudsters pretending to be taken with blockchain era, preliminary coin choices, and crypto-currencies – when truly they’re merely running scams designed to take buyers’ hard earned cash,” the SEC wrote. “We created the synthetic HoweyCoins.com web site as an academic software to alert buyers to imaginable fraud involving virtual belongings like crypto-currencies and coin choices.”

The company posted a sequence of “pink flags” which will lend a hand buyers deduce whether or not an “funding alternative” is official or a rip-off. The SEC warned towards: claims of prime, assured returns; superstar endorsements; claims of SEC-compliance; making an investment with a bank card; and pump and dump scams.

In addition, the fee incorporated hyperlinks to sources from the Commodity Futures Trading Commission (CFTC), the North American Securities Administrators Association (NASAA), the Consumer Financial Protection Bureau (CFPB), and the Financial Industry Regulatory Authority (FINRA).

Matthew is a full-time group of workers creator for ETHNews with a keenness for legislation and era. In 2016, he graduated from Georgetown University the place he studied global economics and tune. Matthew enjoys cycling and paying attention to podcasts. He lives in Los Angeles and holds no worth in any cryptocurrencies.

ETHNews is dedicated to its Editorial Policy

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