is advertising for ICOs unethical? - page 4.

mickey_miner

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Quote from: Deylandra on April 12, 2019, 10:35:34 PM

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?

Where did you get this information? This is an unimaginably large amount of money to advertise the project. I think that only obviously failed projects can allocate their budget this way.

Bitcoinjheta

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Quote from: miklesm on April 28, 2019, 02:07:37 PM

Advertising is very important for every project, but it is usually spent not more than 20% of collected funds on Marketing, so this is acceptible. To be honest, I have never seen a project spending 90% of funds on advertising.

We never know what strategies they have applied by the team owners and financail officers, maybe that is one way of giving a big amount so that it gains a lot of customers purchasing in return it boost the product and company world wide.

shoreno

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Quote from: kindbtc on April 28, 2019, 01:50:12 PM

I do not think they spend in millions on advertising, most icos safeguard themselve by launching different bounty and promotional campaigns where they do jot have to pay in cash and out of pocket rather they pay in a small percentage of company tokens which is the right marketing plan for new projects even if some projects advertise online i do not think their budget goes over several thousands you are just exagerating the advertising expenditure.

Yes they dont pay cash but they only pay on tokens however some ico campaigns do also pays in mix btc plus their ico coins , or eth and other top cryptos plus thier ico coins . to be able to do that they will have to use thier own cash or the cash that they have collected thru their presale . in that way , they can attract more promoters and gives thier ico campaign a good reputation among others that is only paying a token . they will also be using a cash to advertise on other sites if ever they want to be serious on promoting their project

dfktynby1004

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Many projects are wrong and begin to attract investors in substandard and outdated ways. Now it is very easy to find an investor if you are ready to offer a decent product. And even if the crypto community helps, the project is doomed to success. But the organizers today are only concerned about private investment, because large investors need proof of work.

Boombull

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It is a normal thing to do but I think the percentage fund for marketing shouldn't affect others things that need funding for the project. A project can only be known through advertisements but marketing is just a one part of developing a project

Baimovic

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it is very ethical because with us advertising the ICO, the ICO will be better known by many people and it will help sell coins so that the ICO has more potential to succeed and that will also increase our chances of profit in investing in ICO.

GREENch

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To properly manage the money the project must first have an experienced CFO (Chief Financial Officer). Otherwise, the project may have financial problems (as an example of a NEM project)

miklesm

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Advertising is very important for every project, but it is usually spent not more than 20% of collected funds on Marketing, so this is acceptible. To be honest, I have never seen a project spending 90% of funds on advertising.

Nasonn

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Spending 90% of raised amount on promotions is bad business and I doubt anyone will do that. It just doesn't seem plausible. But advertising ICOs is not bad in its own depending on the approach employed.

kindbtc

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I do not think they spend in millions on advertising, most icos safeguard themselve by launching different bounty and promotional campaigns where they do jot have to pay in cash and out of pocket rather they pay in a small percentage of company tokens which is the right marketing plan for new projects even if some projects advertise online i do not think their budget goes over several thousands you are just exagerating the advertising expenditure.

thesmallgod

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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

Alpinat

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Quote from: nikola22 on April 26, 2019, 02:35:04 PM

I don't know what kind of ICOs can spent 90% of funds for promotion. usually for promotion spend 10% or less of raised funds.

Yes they never spend 10% upwards if you just notice some of the ICO in the year 2017 they are reaching their hard capital and sometimes passing hard capital. If you notice they are just giving out the 3% of the whole raised funds in the promotion and not 90%, They can spend 90% but the project will not improve anymore because of insufficient funds.

installer

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Unethical is when people are promoting scam projects, that can lead to involving more investors and at the end everybody is left with empty pockets, hunters are going to lose their image and time, and investors will lose their money.

ariyzt

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spend much money to promote is good but if that mean you spend almost 90% of total ratio from ico funding then its not good. promote is good but for that much ratio i dont think that worth it. better spend on project that you work

fortunecrypto

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Quote from: Deylandra on April 12, 2019, 10:35:34 PM

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 have been to a lot of bounty campaign, but I have never encountered an ICO that spend that much, in fact, they only allocate 3 to 6 % of their coin 8% is the highest in advertising their ICO, your post is fake, get the fact first before posting, every bounty hunters knows the fact.

xclusiveguy

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Quote from: Deylandra on April 12, 2019, 10:35:34 PM

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?

Advertising for ico ain't bad in my opinion because that is the only way that they can reach out to lots of people, without marketing they can't meet up to their target, and I don't think any ico can spend more than 80% of fund raised on advertising their products, which money will they use in developing their project

Coltpython

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All icos require some form of advertising in order to reach successful sales. I believe the larger percentage of the funding for marketing is from their tokens which is also being put up for the token sale. So they do not really use funds gotten from the token sale itself but they pay for marketing mainly using their tokens

Sundaey

jr. member

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Fair enough how sure are you worth of that amount can be spent on advertising or promotion? If you are just saying in case only a dumb ass man can make 10k and spend 9k advertising the project, what is left for him to make the project work.

rdewilde

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First, spending 9 million out of 10 million on promotions doesn't look idea, in fact it is not possible how can a project spend almost everything on promotions, how then will they be able to deliver what was promised? ICOs only spend a little amount of the token supply for promotions. Also, advertising or promoting an ICO is a legitimate process and I don't think it contravene or go against any laws.

Eildosa

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As far as I know there are few such companies. Generally everyone uses word of mouth as a promotion of their project. So I didn't hear information that someone spent so much money on advertising.

Topic: is advertising for ICOs unethical? - page 4. (Read 13858 times)