Excerpt from: https://coins.newbium.com/post/3206-crowdfunding-vs-ico-confront-the-expert-legitimacy

One major difference between traditional methods of crowdfunding and ICO, is the market value. When a product is introduced on crowdfunding platforms like Indiegogo, investors and buyers aware of exactly what to expect when the product was complete.


            For example, when the smart Pebble start their crowdfunding campaign, the investor can immediately find out whether the product is worth the amount of money by comparing other people's products on the market.


            In contrast, almost impossible to predict the outcome of the ICO, especially if users are not fully aware of what they can expect. ICO itself is not based on market value in the real world, thus making it vulnerable to substantial under or overvaluation of assets.