There are good guidelines why you should invest/participate on ICO 'Initial Coin Offering' coined from IPO -- initially when you invest on IPO, the price of the shares/stock is high as its expected, and it can go down as deep as it want and can drive you insane, a visible improvement can take 12-months and up for none-too-on-demand brand/stocks -- same with ICO.

ICO is an alternative to VC -- as there are many drawbacks/strictures when it comes to 'venture capitalist' reason 'small' start-up entrepreneurs, no capital at all, swapped and now into ICO schematics. Also as a startup in business especially in the case of this 'hyped' blockchain its always important to read all the details it have before investing your money.

A thorough review of the ICO [its team, structure, WP, and its promises] can lead you to a correct investment. If your not so good at reading trend on the exchanges especially the 'stocks' you bought, there is a high chance you will loose the 'game'.

Good investing is different from trading/gambling. To conclude I still believe start-ups onto ICOs.