The underlying problem here is that the ICO model as most-frequently implemented is pretty broken. It's kind of a like a hybrid between an IPO and a Kickstarte

The underlying problem here is that the ICO model as most-frequently implemented is pretty broken. It's kind of a like a hybrid between an IPO and a Kickstarter, but: 1. With kickstarter, the reward has roughly constant value with respect to the total funds raised; 2. With an IPO, the supply is predetermined. While the cost per share may be astronomical by the time you get around to buying in, it's clear what fraction of the offering you're purchasing. ICOs tokens typically have: 1. value inversely proportional to the total funds raised; and 2. (since supply is not determined until the end of the ICO in many cases) no clarity around what fraction of the offering an investment actually purchases until the offering is complete. This leads to some pretty crazy situations, Bancor being the most recent and most notable example, but in general, it just doesn't really lead to very sane practices. --- This is precisely why IPOs are conducted the way they are, with investment banks pre-purchasing a predetermined number of shares just shy of what they expect to be a fair market value, handing that money to the company, and then selling those shares on the open market.