How the SEC’s Fake ‘Howey Coins’ Website Taught 100,000 Investors to Spot Crypto Scams (and Fooled Some Too!)

To counteract the amount of fraud happening in the crypto currency investment space, the SEC (Securities and Exchange Commission) took a unique approach. To educate the public they launched a fake Initial Coin Offering website for “Howey Coins” — a cheeky nod to the Howey Test (helps determine if investments fall under their watchful eye).
 
The Howey Coins website is a total spoof, decked out with an official-looking logo, a “Meet the Team” page, phony testimonials, and even a flashy “15% bonus” countdown timer. The site made some pretty wild claims: the cryptocurrency is “officially registered” with Uncle Sam and will be traded on an “SEC-compliant exchange.” Plus, it promises you can use these imaginary coins to buy merch, swap for other cryptos or cash, and even splurge at participating airlines and hotels.

 
But this isn’t just a high-tech prank. With so many crypto scams ripping off unsuspecting investors, the SEC used this fake website to teach folks how to spot the real frauds. Click any “Buy Coins Now!” button, and you’ll be whisked away to a legit SEC page explaining the ruse and giving you the lowdown on avoiding actual scams. 

As a savvy investor you should know about the five red flags when it comes to an investment that sounds ‘too good to be true’:

 
– Claims of high, guaranteed returns
– Celebrity endorsements
– Claims of the investment being ‘SEC Compliant’
– Ability to invest with a credit card
– Pump and dump scams
 
According to the SEC, the Howey Coins website was successfully able to educate over 100,000 potential investors. However, and this is kinda unbelievable, many of them were still mad that they couldn’t invest in the new Howey Coin!