If you respond to an investment offer like the one shown above, you could get scammed – HoweyCoins are completely fake!
The SEC’s Office of Investor Education has seen fraudsters pretending to be involved in blockchain technology, initial coin offerings, and cryptocurrencies – when really they are simply operating scams designed to take investors’ hard-earned money. We created a bogus initial coin offering for “HoweyCoins” as an educational tool to alert investors to possible fraud.
Fortunately, frauds often have a number of “red flags” that can help you tell if the so-called “investment opportunity” is really a scam. We hope reviewing these red flags may help you recognize a real fraud in the future!
RED FLAG: CLAIMS OF HIGH, GUARANTEED RETURNS
- “HoweyCoins is the newest and only coin offering that captures the magic of coin trading profits AND the excitement and guaranteed returns.”
- We anticipate OVER 1% daily returns, with DOUBLE 2% returns on Tier 1 investors in pre-ICO stage secured purchases.
- We also forecast a minimum growth rate of between 7% to 15% annualized, making HoweyCoins attractive for long-term investment. In addition, HoweyCoins can serve as a GUARANTEED hedge against inflation and market loss.
Every investment carries some degree of risk, which is reflected in the rate of return you can expect to receive. High returns entail high risks, possibly including a total loss on the investments. Most fraudsters spend a lot of time trying to convince investors that extremely high returns are “guaranteed” or “can’t miss.”
RED FLAG: CELEBRITY ENDORSEMENTS
- CHECK OUT THESE MESSAGES FROM OUR CELEBRITY PROMOTERS.
- “I’m all about HoweyCoins – this thing is going to pop at the top!” @boxingchamp1934 (John “Champ” Smith, boxer).
Celebrities, from movie stars to professional athletes, can be found on TV, radio, and social media endorsing a wide variety of products and services – sometimes including crypto-currencies and coin offerings. A celebrity endorsement does not mean that an investment is legitimate or that it is appropriate for all investors. It is never a good idea to make an investment decision just because someone famous says a product or service is a good investment.
RED FLAG: CLAIMS OF “SEC-COMPLIANT”
- HoweyCoins will trade on an SEC-compliant exchange where you can buy and sell them for profit.
The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not. Many platforms refer to themselves as "exchanges," which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange. Although some of these platforms claim to use strict standards to pick only high-quality digital assets to trade, the SEC does not review these standards or the digital assets that the platforms select.
RED FLAG: INVESTING WITH A CREDIT CARD
- Investors can purchase HoweyCoins with any major credit card.
Investors should understand that most licensed and registered investment firms do not allow their customers to use credit cards to buy investments or to fund an investment account. We urge investors to work only with a licensed or registered investment professional or firm and not attempt to use a credit card to fund investments.
RED FLAG: PUMP AND DUMP SCAMS
- Special pre—ICO pump special: once in, we will provide expert timing advice to make sure Tier 1 and limited offer Tier 2 participants maximize immediate gains with a pre-planned pump to occur shortly after the pre-ICO phase ends. Our past two pumps have doubled value for the period immediately after the pump for returns of over 225%.
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.
Learn more about investments involving crypto assets.
Paid for by the SEC