Topic: is advertising for ICOs unethical? (Read 13847 times)
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%.
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)
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?
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.
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.
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.
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.
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.
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.
How come you know about the particular amount spent for advertising, that can be. Promoting projects can be one of the best step to take to earn more money and people to know your business so nothing bad promoting, and those mediums used have no problem at times because he creates them to earn..
Perhaps, the discussion built up due to the resulting drawbacks of ICOs projects that is why people are considering the promotions of it as promotion of wrong thing. But this is not fair for the ICO projects because due the scammers activities cannot put the blame on all ICOs projects because all of them are not offering by scammers’ developers that is why we have to find out good one. Else, follow new IEOs and get start with it. 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?
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?
Not necessarily. The ICO phase is the crowdfunding phase - it's where you draw the crowd in.
So it's mostly a marketing phase where you don't have a product yet to show.
The guys behind the ICO are mostly marketers, community managers and designers who build the prototypes and do the crowd communication.
So no, actually advertising is not unethical, it's THE main purpose of an ICO.
Obviously the ICO must have a product/service offering, otherwise it's a scam. It can't just be marketing, but marketing is a big part of it.
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?
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?
In the first place, where would you gather an information concerning how much would the ICO spent on promotions? Because thinking about the matter, Projects aren't even responsible to fund the bounty hunters, in addition marketing transaction I guess would not going to price that high just to say, they've putted the right amount in marketing.
Talking of raising money for advertising and the ratio, the project pays for this advertisements only after the ICO fund has been raised. Most of them do not even pay these days.
One of the strategies I am sure people like Binance will be using is to verify the authenticity of the developers through their KYC, so that when they mess up, they can be reported to the authority. So to always be on a safe side, we must only follow IEO from TOP exchanges like Binance, Binance will never by any means allow every bad project.
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.
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.
Projects should determine the pre-allocated amount according to their pockets. The amount written in the bounty is often not distributed as it is. Most of times the specified reward is reduced.
Advertising is a way of getting out projects to the community. I don't see it that bad. The bad thing is the fact these projects put in more in advertising than actually putting in more to develop the project. Most of them do not even pay for the so called advertisement when it comes to bounty hunting.
Any project that intend using that huge ratio for advert will probably be a scam project which at the end of the day might not even pay the advertisers since most of them always want to pay using token which might not get listed in any exchange in years. Most of the time project dev but high percentage for advertisements just to catch hunters but might not pay the actual amount after the work is completed
Well pointed. There are companies who have not spent a single dollar on advertisement and have had great demand for their products. I think that it is unethical because if a project in crypto is great enough, it will attract the users without advertisement. Initial exchange offering does not spend millions on advertisement because people on their platform know it is worth investing in IEO. 
I have not seen such an ICO with 90% promotion allocation. The normal allocation for promotions is 10-20 % It really depends on the product and the project itself how much promotion it needs.
It seems to me that you haven’t looked into the Bounty companies for a long time. I have not seen ml total pool of bounty companies above 2 or 3%. Perhaps we are talking about different numbers, but nevertheless, few funds are allocated for advertising in cryptocurrency . 
I have not seen such an ICO with 90% promotion allocation. The normal allocation for promotions is 10-20 % It really depends on the product and the project itself how much promotion it needs.
You read how many big giants such as Coca Cola, Starbucks, Proctor And Gamble and others spend money on advertising. Although they are all well-known trademarks worldwide. Advertising helps you to sell your product and the one who spends a lot of money on advertising increases his chance for a good sale of his product.
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?
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?
In the first place, where would you gather an information concerning how much would the ICO spent on promotions? Because thinking about the matter, Projects aren't even responsible to fund the bounty hunters, in addition marketing transaction I guess would not going to price that high just to say, they've putted the right amount in marketing.
Talking of raising money for advertising and the ratio, the project pays for this advertisements only after the ICO fund has been raised. Most of them do not even pay these days.
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