is advertising for ICOs unethical? - page 6.

Altcoinrusher

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Quote from: ataki on April 24, 2019, 05:26:06 PM

For bounties ICOs spend only 1-2 % of their total supply and for future marketing activities around 5-10%. Marketing activities has their limits and it would not be justifiable to spend 50 % of the funds for marketing.

That is more ideal proportion and not the one that is posted in OP which way too absurd. No team in their right mind would spend big budgets like 90 percent for marketing alone which is taken from ICO proceeds.

ataki

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For bounties ICOs spend only 1-2 % of their total supply and for future marketing activities around 5-10%. Marketing activities has their limits and it would not be justifiable to spend 50 % of the funds for marketing.

rarkenin

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The ICO advertising problems are not only problems of teams and there is a great chance to upgrade the old version of the advertisement. It is not unethical to advertise the ICO anyway.

begau

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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?

According to my understanding, in business to achieve the set objectives, we cannot ignore marketing and advertising strategies. Therefore, ICOS advertising projects and spending a lot of money are understandable. Because it will be an attraction from known investors. You cannot develop your own projects without advertising.

DAVETUN

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Advert is a necessary requirement for the success of an ICO, there is no possibility in your submission, except for scam project, no reasonable developer will use 90% of fund raise for advert, it is ethical to advertise for investors awarness and adoption.

BlueStackz

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How did you get to know that they spend that much to promote their ICO? I don't really think so, and there's no site or place where they show how much ICOs have spent, though I do know they spend a lot of money, but most of them do recover more than that and even have more money. And that's one of the reasons ICO is not meant for everyone, if you don't have a good idea and you can't afford what it will cost, then its better to stay off. And not what these guys do these and stuffing the crypto community with lots of useless ICOs, like seriously.

Altcoinrusher

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I hope you could provide us with proofs to support your claim and could provide us with much clearer insight on that matter. As what I've mentioned earlier, BUDGET is already allocated even before the start of the ICO because most projects set aside a certain portion of their total token allocation for marketing purposes but that BUDGET don't come from the proceeds of the ICO, rather, it was a token allocation and not ETH or BTC of fiat proceeds, I hope you know what I mean.

harrypotpot

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Quote from: Soberb on April 12, 2019, 11:53:52 PM

Very good question. I also do not know exactly why new projects spend so much money on advertisements. In cryprocurrency, advertisement is worth it? It there any set criteria that binds a project to collect only a certain amount of money? or one can collect as much as it can? But I think cryptocurrrency is such platform where advertisements rule and without advertisements, you can not get the attention of traders and investors. That is why I think it is a bit different from stock market. It is decentralized and it is for all people around the world.

That is because, they are thinking for a long term investment back from their project. The best way to do that is to strengthen their marketing, and even the profit is not really obtained on the ICO stage, once their project has been launched, there, the profit will going to be steady. They will need just to be successful in funding their project initially.

rachman mahesa

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Promotional or advertising budgets in every ICO are already allocated. Because a good project is certainly not possible to do excessive promotion to spend the project funds, that is not possible. Because now it's very difficult to get funds from investors. Of course the project also will not arbitrarily issue funds only for excessive advertising promotion or unethical.

dupee419

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Nope, your example is completely wrong, if an ICO would likely to make a project then there is a BUDGET for this and I don't think that any ICO would spend 9 million dollars just for advertising and leave a million dollars completely for the project, it doesn't make sense and a good ICO will likely to establish a BUDGET PLAN completely for the expenses that will be used for advertising, bounties, and for the project itself, so I don't think it is considered unethical but we cannot let go of the fact that some ICOs are likely to be this bad and will probably do this if there is no one to take care of the budget.

Altcoinrusher

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Quote from: goaldigger on April 23, 2019, 07:57:04 AM

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?

Legit ICOs are businessmen not kids. Why would they spend 9M for advertising if they only had 10M in their hands. Advertising expense are only costs 20-30% of the fund. They should only do that if and only if they had 95-100% of return of investment. Common sense is the key.

Some ICO's have such similar figures with regards to promotion, but I think they would not spend a sizable amount on such activities when they have only gathered almost the same as that amount, rather, I think it was already allocated through tokens value, and not the actual fund generated thru the ICO which is somewhat absurd in financial sense. If I'm not mistaken, most of that data can be found on project's tokenomics.

goaldigger

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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?

Legit ICOs are businessmen not kids. Why would they spend 9M for advertising if they only had 10M in their hands. Advertising expense are only costs 20-30% of the fund. They should only do that if and only if they had 95-100% of return of investment. Common sense is the key.

slaman29

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I don't know about ethics but it doesn't even make business sense for the investors. You are buying value, but if you are putting in a dollar and immediately only get back 10 cents, then you need the token to be valued at x10 from the start of listing just to break even. Sounds absolutely ridiculous to me.

If you're an ICO though, they don't care. 90%? 95% IF the end game is profit for you, everything goes.

coin-investor

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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?

Can you give us the name of ICO that spend a huge amount of their own money in advertising, the fact is they are using their own token which is the money they produce to pay people to market their ICO, which is known as bounty campaign, they never spend a single cent here only their effort to create their own token, roadmap website and promotional materials, but they pay zero to their advertisers.

Altcoinrusher

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I think advertising an ICO is not unethical, rather, what is unethical is that some ICO's have deceiving promotional gimmicks like having a huge amount of bounty pool designed to attract bounty hunters but in the end turned out rip them off by not fulfilling conditions on their own bounty campaigns. This I think is very unacceptable and will have a negative impact on the project itself.

SistaFista

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How can you raised enough funds if you are not advertising your ICO ?
Peoples cannot know about your coin if you don't have any promotion planning in the public.
And the good ICO should have fund first, to advertise their ICO and give explanation about their project.

Samboo

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Every project sets soft cap and hard cap. I think setting soft and hard caps means the limitation of rising funds. Soft cap means for a project to continue it if it reaches soft cap, and hard cap means a limitation of maximum fund-raising. It means if a project reaches its hard cap, it cannot raise more funds. I agree that there is not strict regulations regarding ICO and STO. Regulations are needed.

kevinex

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Quote from: StephenJH on April 22, 2019, 05:13:15 PM

Advertising the ICO can be unethical if there is any involved scam in the project. ICOs usually are created by porfessional teams who seek the success of the project. There is no exception here, fortunately.

unfortunately now I don't believe in ico too much. even now some ico projects are also diminishing in demand. where the market is no longer supportive of ICO, because investors don't believe in ico which is not really convincing.

fosco333

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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?

ANd thats why ICO need financial advisor so they won't spend too much money just for the marketing promotion.
Anyway, promotion and advertisement is not unethical, as long the budget is not too high.
It is a part of the marketing strategy for the ICO.

LogitechMouse

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

~snip

This is the reason why they are doing a bounty campaign. To reduce their expenses in advertising because they are not spending that much money to the bounty campaign. They are spending tokens to advertise their project.

One thing more, please provide a good information of what you posting. I didn't hear any ICO that spent 9m on advertising Cheesy

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