is advertising for ICOs unethical? - page 9.

pinoy.bolanon

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Quote from: Deylandra on April 12, 2019, 11:35:34 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?

Because business needs massive promotion whatever it takes, this is the first rule of putting up a business. ICO is an international business so, you need to cater the entire audience by means of massive promotion, and whether the business would succeed or not, its up to them to decide.

Herbert2020

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it is nowhere near that numbers. you see the main purpose of an ICO is to raise funds no spend them! in other words it is a scam where lazy people copy some code and get paid for it. such people don't want to spend that much money. that is the main reason why they keep advertising using fools through "bounty hunting" and things like that. because they can pay them an extremely small amount of money which is not even real "money" it is their token which these fools have to sell to get money so as a result it doesn't even cost them anything to advertise their ICO since they are paying in a token that they created out of thin air with no cost.

GhostWithin

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Quote from: aioc on April 13, 2019, 01:45:18 AM

I don't think is the case, they spend only 3 to 7 % of the coin supply I have never seen an ICO that spend half of their supply just to market their token, I have been part of bounty campaign and they only spend 7% the most, can you name that bounty campaign that spend over 50% of their supply.

it's about promotion in generally, and the bounty campaign is only part of that.
However, I havnt seen project that would spend so much money on promoting and herewith didn't try to hide this fact.
Usually scam projects spend most of the budget on promotion.

vv181

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I wouldn't say it unethical instead ill say it ineffective, There is nothing wrong about the project funds allocation within their budgets, but it's kind of ironic if the project prioritizes promotion funds instead of research and developments. Personally, I'll stay away from that kind of project whereas their prioritize a promotion or advertising instead of focusing on the budget of the development.

gilangIDR

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For me that is not a problem, every ICO project must have its own way. They are free to promote their projects. Of course, nothing should be violated, as long as it is in accordance with the rules and ethical codes that apply, promotion of the ICO project is a legitimate thing.

The development of the ICO project this year has indeed declined because most projects have made changes towards the IEO.
But still there are still good opportunities and it depends on who we choose.

aioc

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Quote from: Deylandra on April 12, 2019, 11:35:34 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 don't think is the case, they spend only 3 to 7 % of the coin supply I have never seen an ICO that spend half of their supply just to market their token, I have been part of bounty campaign and they only spend 7% the most, can you name that bounty campaign that spend over 50% of their supply.

Soberb

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Activity: 276

Merit: 1

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.

alexsandria

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Quote from: Deylandra on April 12, 2019, 11:35:34 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?

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.

Deylandra

jr. member

Activity: 54

Merit: 1

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?

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