OK, yes -- there are many cool technical possibilities. And per the other commenter above, it's not as if this is any less rigorous than an average seed round.

OK, yes -- there are many cool technical possibilities. And per the other commenter above, it's not as if this is any less rigorous than an average seed round. OK, but when you have people investing multiple millions at a 100mm+ valuation, on an unproven team (and this is a charitable description in many cases), pre-product, there is a risk that the opportunity is being mispriced. There is a conflict -- on one hand, an ICO is "fairer" to developers in that they receive immediate compensation, and a larger share of the opportunity for the work they are doing. On the other hand, this mechanic is highly prone to fraud and abuse.