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I can't argue with it's effectiveness, but I would question the ethics.

In business that would be "reputation management". If it's not effecting the bottom line then in business it's allowed. Personal is similar yet different because the costs are ostracism rather than mere loss of customers/investors/profit.

Reputation management is something different, we're talking about how something works and what you have handed over to a company. So far you have given them some of your personal details, advertised them on your somewhat influential social media account (at least on Steem, probably on others right?) and recruited more members, in exchange for the promise of some tokens. I am not trying to suggest that you will not be able to make use of the token or that they will be worthless, I am just saying that right now you cannot use them and they are worthless. Thus it's a promise, which you clearly trust, or you do not value the information you handed over, your associated credibility impact by advertising them or the information of those you've recruited.

How it works is that you are modelled on their system as a data point in an ever growing graph of referral identities. It's moderately likely that they'll only use this for their own marketing, but to be clear they now own this data and can dispose of it as they wish. That is a "how it works" thing which can be objectively questioned, not managed by PR. It can be sure tried to be spun by PR people as no big deal, but there are facts to see and talk about.

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