I think that as initial capital requirements go down the only ideas that seek out VC investment are those that less validated. The VCs agree to invest in these

I think that as initial capital requirements go down the only ideas that seek out VC investment are those that less validated. The VCs agree to invest in these "moonshots" that need to bleed for a few years maybe because there is a belief that increased difficulty means greater reward. (Like a video game) The risk may actually not be that high due to the liquidation preferences and the inflated prices and hype may actually be promoted by the VCs themselves so they can offload at high prices. The most important factor for this pump and dump is the founders personality. Crypto ICOs eliminate much of this potential as whilst in the VC model the investor needs to be thinking pump-and-dump. In crypto, every buyer must be thinking this. Ironically due to the hype in cryptocurrencies the hype may be so widespread that this does indeed happen despite it being able to completely upset the funding model. (That large capital requires impressing specific keyholders)