Hello. As an ICO project ourselves, we have a KYC submission on our platform. There are a lot of opinions regarding the KYC or not, but so far, on our side, no one has complained about their personal data. We use an automized KYC provider, where none of your personal data is stocked and like this, we avoid any of the problems you may have to think about.
In our opinion, we think the KYC submission is necessary, from the verification of a person's age to know if this person is legit or not.
Hope that you will get our opinion into consideration too, as it's one from the side of a cryptocurrency.