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The SEC has created a fake cryptocurrency website to teach people about ICO scams


It’s been said that experience is the best teacher, and that’s presumably why the US Securities and Exchange Commission has created a website promoting a fake initial coin offering. Users who click “buy now” are sent to an informational site about ICO scams. The phony coin is named for the Howey Test, which can be used to determine whether a given asset meets the legal definition of a security or an investment contract like a stock or bond. The Howey Test has become a hot topic in cryptocurrency circles as the SEC grapples with whether or not some digital coins should be subject to regulations designed to protect investors against fraud.

Now that’s commitment: Kudos to the SEC for its thoroughness in designing a website that fits right in among the many out there selling scam coins. The agency even created a fake white paper (PDF). Now let’s hope prospective Howeycoin buyers learn their lesson.