5 FACTORS IN A SCAM ICO

5 FACTORS IN A SCAM ICO

Howeycoins
Howeycoins

HOWEYCOINS

 

 

The SEC (Securities and Exchange Commission) set up HoweyCoins to teach investors about the dangers of cryptocurrency investment scams.

There is some scamming going on currently in 2018 so you need to beware.

If you follow these five 5 rules you should usually be ok,
however you need to follow your gut instinct as well.

HoweyCoins  is Fake News

It looks real. It has a website. There’s an ICO  There’s a white paper.  Lots of talk about the team.

Celebrities saying good things about it.

However, it is all a figment of someone’s imagination. The website features several characteristics that are common to fraudulent offerings, including a white paper with a complex yet vague explanation of the investment opportunity, vague promises of guaranteed returns, and a countdown clock that shows time is running out on the deal of a lifetime.

Initial coin offerings, like other investment opportunities, certainly can be legitimate. However, be aware that some are not.

Here are 5 (five) red flags to watch for so you don’t get tricked by crypto scam artists attempting to relieve you of your hard earned currency.

This site was set up by the US Government to show you How Easy It is To Set Up A Scam ICO Website

5 Common Red Flags In Cryptocurrency Scams

1. Claims of High, Guaranteed Returns

Every investment carries some degree of risk, which is reflected in the rate of return you can expect to receive. High returns often require high risks, including possibly losing your entire investment.

Most fraudsters spend a lot of time trying to convince investors that high returns are “guaranteed” or “can’t miss.”

No investment has high, guaranteed returns with no downside.

2. Celebrity Endorsements

We have all seen celebrities pitch products before, but today, you may see a celebrity pitch a cryptocurrency investment offering. If you see a celebrity endorse a crypto investment, it doesn’t mean that the investment is legitimate, legal or appropriate for your risk tolerance.

This should go without saying, but never invest because someone famous says it’s a good idea.

You have to do your homework and reach your own, independent conclusion.

3. Claims of “SEC-Compliant”

The SEC 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 false impression to investors that they are regulated or meet the regulatory standards of a national securities exchange.

Use your own good judgement when choosing an exchange.

4. Investing With A Credit Card

When is the last time you made an financial investment with a credit card ?

Most licensed and registered investment firms do not allow their customers to use credit cards to buy investments or to fund an investment account.

The SEC recommends that investors work with a licensed or registered investment professional or firm when funding investments.

There is a reason that firms attain professional status as investment firms, do you want to invest with the unknown ?

5. Pump and Dump Scams

It’s one of the classic investment scams.

In a pump and dump scam, according to the SEC, scammers 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; you can get badly burnt.

Once the scammers sell their shares and stop hyping the stock, the stock price typically falls and investors lose money.

For further information on how to protect yourself from investment scams, check Here….

Cryptocurrency Investment Scams

Apart from ICO scams there are many other things to watch out for in this new crypto world…

Avoid Crypto Currency Scams at all cost !

 

 

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