Not sure if anyone else opened the white paper, but it is acutally better than most of the ICO papers I read in general.
There are gems like:
> "Upon a successful ICO, the nondisclosure agreements terminate and we will be able to disclose the largest
network of travel partners"
> "we expect a bidding war to increase HoweyCoins valuations by severalfold."
> "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%."
Do note that the wording leaves open (and even implies) that the airline alliances they'd partner with _don't_ account for 60% of revenue passenger miles in 2015.
The PDF is a wonderful document, it also has an entirely incorrect description of how inflation works.
Microsoft Word - HoweyCoin White Paper v4
(Stole this comment from a friend, but...worth it.)
> 1. It is an investment of money
> 2. There is an expectation of profits from the investment
> 3. The investment of money is in a common enterprise
> 4. Any profit comes from the efforts of a promoter or third party
I don't know if the crypto-currency community have a widely accepted view of how this applies to specific currencies, but I feel that "store of value" / HODL coins are dangerously close to failing the Howey Test and thus not being accurately classed as currencies.
People in the industry generally know who is dirty and likely to get indicted.
I find it ironic that in a world where we've never ever had more information at our fingertips, that "investors" should be so ignorant of (recent!) history.
I think such a scheme, if done carefully, might actually be useful. One of the problems with things like kickstarter is that you see the plan of what's going to be done, fund the project and then half way through you see that the plan has changed, or the delivery schedule has changed and you want out. There is no way to derisk your pre-purchase.
Having said that, I have seen no actual examples of ICOs that I think are legal.
The SEC has already said as much in respect of ICOs.
I have yet to meet anyone who has changed their opinion on the legality of ICOs as a result of the SEC statements. In this respect professional fund managers are basically no different than redditors, where you show them an SEC statement and they see whatever they want to see in it.
Sure, but there is a difference between “I had a different interpretation of the law when I issued securities” and “I blatantly violated SEC guidance.” The latter is easier to prosecute and litigate.
As an American I now want to find a foreign country I can relocate to that is safe and has regulatory frameworks that are friendly to this type of new fundraising.
It's almost certainly derived from the Howey Test.
https://www.investor.gov/howeycoins has the explanation
> I’m all about HoweyCoins – this thing is going to pop at the top!
Edit: Wanted to add that the success (Well, maybe not 'success', but popularity) of Dogecoin should highlight the value of making things accessible. Not everything needs to be a silly meme, but making things fun and building a community can make a huge difference.
I can imagine the email to the office now. That would be the coolest thing ever... "we need volunteers, must be reasonably photogenic and capable of producing a foreboding smirk...."
The site was announced today. The whitepaper was created on 2018-04-11 and the site was registered on 2018-03-08. So they probably spend a few months and 10k's $ on this scam project.
This project only works "PR"-wise, because it is posted on social media. No unsuspecting investor is going to happen upon on this site and change his/her behavior and be "educated". That's a deluded pipe dream by out-of-touch no-coin government employees.
This is 1990's Microsoft level of lame.
they link to the investor's advisory...
By doing this, they also inflate the "market" value of their ICO, which leads to increased popularity and others notice and throw some money in.
It's not clear to me what proportion of ICOs are money-laundering vs. real purchases, but I suspect it is quite high.
I know I was quite tempted to make my own coin a number of times, but I couldn't really see it as anything but stealing.
It's all just smoke and mirrors. The reality is that they never had the capabilities to compete in the mining business. But they sure sold a ton of their shit tokens!
Found it on here a couple days, maybe weeks back.
iirc there was a script someone made distributed with bitcoin core source which would ask about basic variables and then bam you got a new coin ready to start mining.
With tokens on other coins it just becomes soo easy
Savvy investors want proof that the ICO organizer is running a scam, and that it has legs. The SEC has merely created a playbook, not a fraud deterrent.
The ICO scam is a genre of investor literature. As such certain obligatory signs and conventions will be present:
- the countdown (made its first big appearance with the Ethereum crowdsale)
- use of the term "blockchain technology" in the opening paragraph
- combining "blockchain technology" with a secondary domain (e.g. Travel)
- the more non-obvious the match between "blockchain technology" and the secondary domain, the better
- focus on benefits, not features
- describe a problem everyone recognizes (travel is expensive)
- state the size of the market for solutions ($1.5 trillion)
- management team headshots
- appeal to authority/celebrity
- ROI forecast
- a whitepaper that carefully avoids revealing how the token fulfills the promises made in the marketing material
Ticking all the boxes lets the ICO operator reassure the prospective investor that all steps have been taken to ensure future buyers of the token.
Think of it as proof-of-future-bagholder (PoFB). A rinky-dink ICO that can't bring itself to lay the fertilizer sufficiently high will be in no position to keep investors coming in after the crowdsale ends.
Savvy investors are likely not what this is targeting; they're generally savvy enough to skip terrible offerings. Those that were thinking of mortgaging their house to buy BTC when it was up late last year are.
Just go after existing ICOs. Arrest people, prosecute people, go after people.
If it's China or whatever, collaborate with China. Chinese citizens are scammed as much as US ones.
Just arrest all the ICO scammers. Arrest the ERC token pumpers, arrest the exchanges.
Making this site couldn't possibly have impeded them in that task in any way that isn't grossly outweighed by the public good of its educational value.
> 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.
Either this is a major fraud risk, or this isn't really a cryptocurrency. Is the HoweyCoin ledger reversible and centralized?
EDIT: derp, it's a joke
But they're not the intended audience, right?
"Many" == 99%. There are no non-scam ICO's.... even the ones that aren't intentionally run as scams are, ultimately, scams.
ICO's don't invest in a company, they "invest" in a brand new "currency" that somehow magically reflects the value of the "company" that created them. Why anybody would buy into this is beyond me...
Ah so securities fraud instead of just plan vanilla fraud?
All ICO’s are scams. Period.
Consider this "defense in depth" against fraud.