This year we have seen hundreds of new ICOs flood the market.
White papers & Road Maps for the project are being created. Investors are then pumping in millions of USD for their tokens due to the hype and greed.

Alot of these ICOs are teams of a few developers. How much money do they need to get started? Previously such company's would start of with several thousands worth of investment.
If the company was a good project and had the passion to succeed it would make it. A high percentage would of course fail.

A lot of these ICOs will not deliver on their promises. The road map goals will not be met.

QRL is one recent example. Development goals were not met and one of the developers left the company dumping a lot of coins on Bittrex.

When more and more projects fail to meet goals the bubble will pop.