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 doubt the authenticity of this information because since I got to crypto, I have not seen an ICO project that has spent 90% of total raised funds on promotion. If you are talking about airdrop then that's another situation entirely because there has been some projects that has airdropped more than that amount.