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