For people thinking about getting deeper into cryptocurrency investing, HoweyCoin might seem like a sure thing. The cryptocurrency's upcoming initial coin offering, or ICO, was announced in a tweet from the SEC, it has a team of pros, and it's been backed by celebrities. Unfortunately, any potential investors would be in for a surprise, as HoweyCoin was set up by the SEC as an example of what an ICO scam looks like.
The seeming veracity of HoweyCoin is what makes it so effective. ICO fraud is becoming increasingly common in light of the cryptocurrency boom, as scammers recognize how little many investors know about the technology behind cryptocurrencies. Scammers thus announce these ICOs, rake in "investments", and then take the money and run. HoweyCoin thus helps to educate people on the red flags, like unverified celebrity backers, untraceable founders, and a vague whitepaper.