That's just the simple truth, most people don't really care about the product, they don't care if they have working product or not, they most care is the price, and i think the moment people starts to care about the working product, the better for cryptos, the better some of fake coins will go away and real coins will stay.
Nowadays, people are more concern about the profit they would be making than the use case of the project which would be what we should focus on. What most ICOs doing is the opposite of those who are going to be listed in the stock market because the company has to prove itself first that they should be worthy to be listed and has a capital requirement and they already have a proven track record which would make the people buy the stocks while in ICOs, they collect the money first before doing anything that's why many are being scammed.
Well it's a pity that many people in the crypto space are only there for the money they can make from the space, most people don't really care about the tech, whether it has a working product or not. they are in for the money and not the tech.
It's a given that it would be very risky because anything can happen which would make the team backed out leaving the investors in vain that's why a working product should be introduce first before having an ICO so that people can assess whether it would be worth investing in. I think this should be one of the qualifications but then the problem is that there are no authorities who will assess the approval of those ICOs.