The US financial regulator decided to demonstrate the way most fraudulent cryptocurrency projects that collect money using ICO look like.

The US Securities and Exchange Commission (SEC) created a fake ICO scam web site in order to show investors how most criminals are attracting funding through ICO to their fraudlent projects.

"We embrace new technologies, but we also want to see what fraud looks like, so we built this educational site with many of the classic warning signs of fraud," SEC Chairman Jay Clayton said in a statement.

The HoweyCoins project simulates cryptocurrency scam projects in many details. It promises rapid growth of the project's token price, praises the benefits of using blockchain in the tourism industry, and states that HoweyCoins are registered with the US regulator and will soon appear on stock exchanges that are regulated by the SEC.

"Combining the two most growth-oriented segments of the digital economy - blockchain technology and travel, HoweyCoins is the newest and only coin offering that captures the magic of coin trading profits," the web site reads.

Potential investors are offered to purchase the project's tokens during ongoing Pre-ICO at a 15% discount. The web site shows a countdown till the end of the promotion. It also has published White Paper, which traditionally mentions such benefits of the blockchain implementation as exclusion of intermediaries in a promising and growing travel sphere, promises large partnerships, without specifying partners names.

The Commission explained that it spent very little time to create this site, and that fact once again proved how easily scammers can get multimillion-dollar investments.

"We did this on a shoestring budget," said Lori Schock, director of the SEC's Office of Investor Education and Advocacy.

According to her, the regulator intends to deal with cryptocurrency frauds tightly.

"State securities regulators also bring cases, and international regulators get involved when it involves [an entity] based overseas."