The SEC launched a fake ICO website called HoweyCoins to educate the public on how to keep an eye out for fraudulent initial coin offerings.

The SEC Launched a Fake ICO, but Why?

HoweyCoins is meant to be an “all too good to be true investment opportunity” that shows how easy it is for scammers to set up somETHing that looks believable.

“The rapid growth of the ‘ICO’ market, and its widespread promotion as a new investment opportunity, has provided fertile ground for bad actors to take advantage of our Main Street investors,” explained Jay Clayton, the SEC Chairman. He continued, “We embrace new technologies, but we also want investors to see what fraud looks like, so we built this educational site with many of the classic warning signs of fraud.”

These warning signs include things like a countdown clock to an even better opportunity, the promise of a guaranteed return, and “a white paper with a complex yet vague explanation of the investment opportunity.”

If anyone on the site clicked into any of the “Buy Coins Now” options, they would be taken to an SEC site providing investor education tools and tips.

Howeycoins was created to show the public that fake ICOs exist and the importance of not taking things merely at face value. Instead, always do your own research. The SEC launched a fake ICO to prove that it is possible to spot fake projects like this “if you know what to look for.”