SEC Launched Fake ICO Website to Educate Investors

The SEC has created a fake ICO website to ensure investors can identify fraudulent company
17 May 2018   1130

The U.S. Securities and Exchange Commission announced on Wednesday it has launched a mock ICO called HoweyCoin. The fake company states that the offer isn't real and users who try to invest in the token sale will instead be redirected to the regulator's education tools, which are aimed at pointing out the signs of fraudulent token sales.

howecoin websiteHoweyCoin website

According to the HoweyCoin website, most travel businesses require processing, centralized currency, and most importantly, nickel and dime fees that add up to literally billions. The fake company states that it is different because it utilizes the latest crypto-technology to allow travelers to purchase all segments without these limitations, allowing HoweyCoin users to buy, sell, and trade in a frictionless environment.

In a press release, the SEC also noted that the site includes a white paper with a complex yet vague explanation of the investment opportunity, promises of guaranteed returns, and a countdown clock that shows time is quickly running out on the deal of a lifetime.

Owen Donley, chief counsel of the SEC's Office of Investor Education and Advocacy, said that the site incorporates many of the hallmarks of fraudulent token sales - pertinent information for investors looking to avoid financial pitfalls.

Donley added that fraudsters can quickly build an attractive website and load it up with convoluted jargon to lure investors into phony deals, but fraudulent sites also often have red flags that can be dead giveaways if you know what to look for.

Binance Launchpad to Change IEO Rules

Binance is going to implement the lottery format for the next tokensale campaign
25 March 2019   101

Binance announced a change in the format of the next tokensale on the Launchpad platform to a lottery. At the same time, the number of lottery tickets per account will depend on the size of the steak in the BNB for 20 days before IEO.

Note that one account can get up to 5 lottery tickets. Winners will be selected by randomizer.

BNB Balance to Lottery Tickets Ratio
BNB Balance to Lottery Tickets Ratio

It is noteworthy that within 20 days before the lottery, the BNB-deposit snapshot will be carried out daily at 0:00 UTC to monitor the fulfillment of the conditions.

Each winning ticket will grant the right to purchase tokens for a fixed amount in BNB equivalent. As soon as the user informs the exchange that he is ready to use a certain number of tickets in case of their winnings, this obliges him to purchase tokens and the money will be debited automatically.

Binance acknowledged that the price of BNB may fluctuate due to daily snapshots, and its potential decline may not be covered by the benefit from the new token, and encouraged users to make informed decisions.

In addition, Changpeng Zhao urged the community to comment on the new format in a separate Twitter thread in order to make the necessary feedback-based changes, if needed.

During the Celer Network tokensale on the Launchpad platform again had bandwidth problems; many people did not manage to purchase tokens.