1) Is this much amount required to launch and marketing the project ??
At a good project, yes it is. A good programmers and managers always want competitive salary, nobody going to work for food. But I feel it the way they always want more money that needed. Why? Just because everybody want more money.
2) Hope soon they received ETH , BTC or any crypto currency in ICO then they will convert to fiat currency . So the money goes out of the crypto market and it will reduce the marketcap.
It is already, you can withdraw money in fiats. Of cause it comes with some losses when converted into fiats.