In some ways that's a valid point. I don't reckon this one is going to plummet that hard, not given how much hash was put onto it, but that does depend on how useful it becomes too. If it has no purpose other than exchanging for other coins, then yeah, outside of pump&dumps it hasn't got much value. On the other hand, if more applications for it come out, it could be very valuable.

An ICO is one thing that helps give it value, because those that invested won't want to see it drop too far. In some ways it could also act as an indicator of what people think the coin is worth, and indeed, a major component of any currency's value is what people believe its value is. However, the lack of one certianly isn't a guaranteed failure.