Re: is advertising for ICOs unethical?

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.

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.

I can see that it seems these same scammers are gradually trying to inflate ICO platforms too but I am sure that IEO will have more control than ICO, since there is a body who has volunteered to research them and properly verify if they are genuine or not.

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.