ICO's are not driven by price, but are essentially a map from BTC or ETH to an exodus address which then generate an equivalent of new supply. They are one-off events because the supply is created at genesis. The goal of the ICO is often to get to the floating stage and then original investors can liquidate their holdings. Freezes are a mechanism to prevent early sell-outs. The tokens themselves don't have any expectation of return besides this increase in price.

Blockchains don't have well functioning auctioning systems, so the mentioned auction of tokens doesn't exist in terms of blockchain based mechanism (decentral ICO's). The question is also which individuals participate - ICO's have legal challenges. We believe the models of ICO's will evolve so that capital will be allocated more efficiently. At the moment too much focus is on a funding event, rather than the product itself which is tokenized. Arguably less capital is needed than currently allocated in the earlier stages of development.