Investment in cryptos is already high-risk affair compared to traditional ways. And ICO adds some more to it.
Most of the ICOs out there are selling on their dreams and plans. Many of them haven't achieved a basic prototyping or working model. They show the roadmap and based upon that people invest in it. It is highly likely that many of those ICOs won't ever take off after product launch. In those cases the price of the token would surely take deep dive making you loose your investment.

As the risk is higher, the rewards could also be higher in some cases. You get the tokens for cheap and if the product really takes off then you could have returns in multifold of your investment.

So, it is suggested you do due diligence to research about the project before investing in ICO. You can research about the team, track record of the company, their product detail and their progress till now.

Invest wisely