Sometimes many people try to manipulate the market and buy precious tokens cheap and selling high later.They intentionally cause fear and panic in the inexperienced members and take advantage to perpetrate their greed activities.
In my own opinion, that is called strategy, you should always take advantage of the market price while it was dumping in order to earn more profit in the future.
I agree lot of day trader didnt invest in a ico. It because they wait it to dump in the exchanger. If you see lot of ico price 1$ but when they list they immediately dump into 0.30$ or more. So why invest in ico if you can buy it in less in a exchanger... but this strategy was so risky because if you buy a bad token you will loss profit..