How to avoid a scam ICO

ICO – Howeycoins

If you responded to an investment offer like this, you could have been scammed –

HoweyCoins are completely fake!

In the interest of our communities safety and protection against fraudulent activity, FundaCoin is continuing to highlight findings that we come across to help bring attention to potential scams by demonstrating typical websites and promises bad actors use when setting up these ICO projects.

Investor.gov, the Securities and Exchange Commission’s site designed for individual investors. Have seen fraudsters pretending to be involved in blockchain technology, initial coin offerings, and crypto-currencies – when really they are simply operating scams designed to take investors’ hard-earned money.

We created the bogus HoweyCoins.com site as an educational tool to alert investors to possible fraud involving digital assets like crypto-currencies and coin offerings.

Fortunately, frauds like these often have a number of “red flags” that can help you tell if the so-called “investment opportunity” is really a scam.

Our bogus site is a mash-up of a number of different things we’ve seen – any particular fraud may be harder to spot than the red flags here.

Here are some of the signs of fraud that are on the HoweyCoins site – we hope reviewing these may help you recognize a real fraud in the future!

1. RED FLAG: CLAIMS OF HIGH, GUARANTEED RETURNS

  • “HoweyCoin ICO  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.”

2. 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.

3. RED FLAG: CLAIMS OF SEC- COMPLIANT

  • HoweyCoin ICO 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.

4. 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.

5. 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%.

FundaCoin offering Transparency and escrow services

When dealing with ICOs tokens or coins for purchase with the aim of selling them onto an exchange, it is very important to know who your purchasing and dealing with, regulated securities and investments have a number of  safety mechanisms in place to protect the general public.

Due to the nature of decentralization and lack of oversight from government organizations, a buyer is required to do a stricter due diligence, before purchasing any ICO Token. FundaCoin helps new Creators launch new projects related to blockchain with many projects offering tokens as rewards for early investment into a project.

For supporters we firstly verify all creators are the original owner by requiring government Photo ID check and facial recognition.

Secondly our supporters and backers have direct access to a creator and team to establish a closer understanding and transparency for all users of our platform.

Finally all payments for any ICO listed through our platform, are held by an independent Escrow service, and only when the project has been delivered and tokens distributed can the funds be released to the creator.

By implementing our own verification process, community due diligence, along with Escrow services FundaCoin aims to provide a safe and transparent blockchain community.

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