Party to the SEC (Securities and Exchange Commission) a few days ago have released education relating to ICO (Initial Coin Offerings). Education SEC to the wider community was created as an initiative to assess the sites that offers investments through the program ICO. Most of the organizers of the ICO is considered too good to be considered a real investment opportunity.
SEC education about the potential Scam ICO was done by creating a site named howeycoins.com. The site was created as a copycat site that offers ICO deliberately false, to educate the investors to be more intelligent and not easily fooled with offers potentially huge scam.
Website of the ICO gives the SEC made a mock education community about mode-the mode used to defraud investors through the ICO.
The SEC argued that a bidding party investment through the ICO has grown so rapidly. It is considered to have been a fertile ground for the scammers to deceive investors. Owen Donley, of the SEC said, the scammers can quickly be able to create an attractive web site, create the site with the deliberately convoluted jargon to be able to attract new investors, "he explained.
Jay Clayton, head of the SEC also provides information, "we have been trying to embrace new technologies, but we also want the investors are able to see what kind of scam mode, so we decided to build the educational site. On the site there are many warning signs which are commonly used as a mode of fraud. Technology ledger can indeed distributed more efficiently done by doing raising new capital, but also its patron and promoter of the need to assure himself that they had obeyed the law of securities. I urge investors to more carefully, and asking more questions, "he said.
Markers are considered to be widely used as a mode of fraud include:
Guarantee of high returnsAny endorsement from celebritiesThe Claim Of SEC CompliantInvestments can be made by credit cardPump and dump just
Some related things as "red flags" above, is generally the mode-mode has been widely used by the scammer in waging its action by using the guise of ICO. The most common and is always used as the mode is the lure of profits up to 1% per day, according to the SEC'S party.
Related it, the SEC argued that any investment will certainly have its risks. While giving a dangle, and guarantee a high payback in a short time is often done in an effort to convince investors to be fooled.