is advertising for ICOs unethical?

[voztata]

I don't think the amount for promotion is big like that. Advertising for ICOs is not that big imo, for twitter, facebook and in this forum, you only need to hire a bounty manager to manage it and maybe it takes 5k-10k usd. For ads on google and social media, maybe a bit bigger. Promotion is not really cost big like what you said.

That figure is just an exaggerated one and way over exaggerated, no project developer will use such amount, that amount is more than enough to build another project if cost of building project is that cheap that they will use 1 million dollars for project and 9 million dollars for promo, if it were to be so, majority of bounty hunter would become so reach by now.

Before that bounty hunting use to pay its hunters, the highest they even budget for all their campaigns is $500,000, not to talk of now that majority of them are now stingy and would want us to work for them for penny.

[zee11225]

I do not believe they spend such amount on promotions, rather they allocate a percentage of their total supply to promotional activities, and this is only done when they are successful with the public sale. And most times, the allocation for the promotional activities might be reduced depending on what was raised during the public sale.

Promotion is one of the most effective marketing techniques, because it can affect viewers to be buyers of the products offered. In marketing ICO, of course the product offered is a crypto coin made by the developer before being thrown into the trading market.
The main purpose of ICO advertising is to get investors interested in investing in the project before the coin is launched. Of course with the description of the benefits described earlier so that potential investors will invest their money.

[steveabrahams]

I don't think the amount for promotion is big like that. Advertising for ICOs is not that big imo, for twitter, facebook and in this forum, you only need to hire a bounty manager to manage it and maybe it takes 5k-10k usd. For ads on google and social media, maybe a bit bigger. Promotion is not really cost big like what you said.

That figure is just an exaggerated one and way over exaggerated, no project developer will use such amount, that amount is more than enough to build another project if cost of building project is that cheap that they will use 1 million dollars for project and 9 million dollars for promo, if it were to be so, majority of bounty hunter would become so reach by now.

Before that bounty hunting use to pay its hunters, the highest they even budget for all their campaigns is $500,000, not to talk of now that majority of them are now stingy and would want us to work for them for penny.

$500,000 for the campaigns is not from the team own money, it's usually paid in a token which the team don't spend any money to it. Well advertising ICO to get your token sale sold out like $5m usd or even more is really worth, like what i said before, maybe it only cost 5k-10k usd.

[fathur01]

Where did you find this information? I have not seen information in the public domain about how much the company spends on advertising the project and I think that it is illogical to spend 90% of the funds on advertising. ICO projects usually prescribed in a Whitepaper in percentage and that will take funds. And if 9 out of 10 million went to advertising, the project would never have been able to reach the fees.

[maldini]

Sometimes the ICO developer has the initial funding from the investor or their partner to fund the ICO advertisement. Now when we see a lot of bounties popping up, in my opinion this is the right way for them to save on advertising promotions. So their ICO funds are still safe for further development because the average bounty is paid from their tokens.

[kanmo]

I've noticed many ICOs have to spend a lot of money on promotions and advertising.

For example, let's say an ICO raises 10 million dollars but has to spend 9 million on promotion.

Therefore, they only really raised 1 million for the project.

Isn't this unethical?

If you're starting a company and looking for investors the traditional way via stock equity, you would never spend 9 million or even 5 million or even 2 million in order to raise 10 million from investors.

This begs the question, what ratio of promotion cost versus funds raised for ICOs is ethical?

And how do we know if an ICO is using an ethical ratio?

I doubt the authenticity of this information because since I got to crypto, I have not seen an ICO project that has spent 90% of total raised funds on promotion. If you are talking about airdrop then that's another situation entirely because there has been some projects that has airdropped more than that amount.

[baigreen]

Take it easy, I don’t think they spend $ 9 million on advertising. If they had such a budget in 2019. This would be a really powerful project, which does not need a fundraiser. So think that they spend projects on advertising when you open your wallet as a hunter)

[zikzag]

Almost all ICOs pay for advertising with their tokens. People who advertise for a project receive a percentage of all tokens sold. Usually in a roadmap you can find how many percent is allocated for advertising. This is usually not more than 5%.