Check Out HoweyCoins, the SEC's Very Own Pump and Dump ICO - Bitsonline

Check Out HoweyCoins, the SEC’s Very Own Pump and Dump ICO

Ever looked at all the suckers who fall for token sale and cryptocurrency scams, and been tempted to run your own? With “HoweyCoins”, it appears the SEC has too — they don’t want your money though, it’s only to warn you to be more critical before sending money to random offerings.

Also see: Central Banks May Go Crypto, Per Morgan Stanley. But Can They Survive?

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HoweyCoins: Your Chance to Travel – and Profit

HoweyCoins splash page

The HoweyCoins website is packed full of investment incentives red flags, the type of which eager token investors routinely ignore. The very name should be a hint, based on the classic “Howey Test” that helps determine if an investment constitutes a security.

HoweyCoins promises to be a token that streamlines the travel industry. It even provides a whitepaper full of all the usual crypto tropes about reducing fees, fiat money, “transforming the way we pay” and sticking it to traditional finance.

Based loosely on a plan to revolutionize (be very careful of that word) the travel industry, the paper and website offer nothing in the way of technical information on how the system works. You’re only supposed to be lured in by the glamor of travel to exotic destinations, and of course the chance to cash out on a stash of tokens (heavily discounted if you act quickly).

But They Have a Whitepaper

The brief “whitepaper” is full of hilarious general copy about the Internet and money that somehow stills sounds convincing. It includes irrelevant statements like:

Business travel is an ever growing expense for large global Fortune 500 corporations in an increasingly globally connected world. Executives and employees traveling globally to offices, manufacturing plants and client locations results in travel expenditures that can reach into the millions of U.S. dollars. Consider the example of a world-leading petroleum company with worldwide drilling and exploration sites, refineries and office locations, and executives and engineers traveling back and forth. HoweyCoins can represent savings of millions of U.S. dollars.

(for the record, a whitepaper is actually supposed to be a thorough research document with full technical details about findings and how a project is supposed to work. It’s not a replacement word for “extended press release”.)

The SEC lets you know it plans to pump the token as soon as the pre-sale ends, promising “expert timing advice” and hinting at over 225 percent returns. You’ll have the perfect opportunity to maximize profits and get out, leaving the less-attentive holding your bag.

Because, even if you know something’s a scam, you can still make a fortune from it if you’re ahead of the fools… right?

SEC investor advice

Oh Wait

If somehow you’re still enticed after skimming all the details, the “Buy Coins Now” button takes you to another SEC notice informing you the entire project is “completely fake”, and advice on how to avoid such scams in the future.

One wonders whether, despite the improbable opportunity and the SEC issuing a press release warning of its own “scam” ICO, many would still send their hard-earned crypto there if they could. We suspect people will continue to fall for these tricks, so long as there are people making unlikely promises.

Have you ever fallen for a crypto scam? Are you planning on investing in HoweyCoins? We have a bridge to sell you. But before you do, please tell us what you think in the comments.

Images via SEC, HoweyCoins, Pixabay

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