The problem with ICOs is that they became suddenly the "thing" to invest in following Bitcoin's extraordinary price increase. Consequently, it suffers from a tight bond with Bitcoin's fortunes, but more importantly, it suffered (and sadly continues to suffer) from poor projects managing to collect money and not deliver products, services etc etc. The whole sector has seen months of pure speculations, some ICOs became famous for their ROIs, some because they were complete cons.
I think the ICOs are a great tool to raise money, I would love to see the sector more regulated so that poor, useless, scammy projects are eradicated.