True that ICOs are struggling with credibility. Most of them are just scams and naive investors fall for it. One of the reasons why the government is getting strict with their regulations specially on ICOs. So here comes STOs. Though they will be heavily regulated and will go through all legal government procedures, those who are willing to scam will still find their way to rip off people.
I believe STOs are more regulated than ICOs so I hope for a lesser chance of getting scammed, maybe you'll stick with STOS, but if you want higher rewards, ofcourse that comes with higher risk too, a much much higher risk. You'll stick with the more crowded and well appreciated ICOs.
These are the risks that are not worth taking. Scam projects has never been profitable to anyone. And why would someone actually risk knowing they will get nothing? Why even encourage those scammers by "risking"?
Totally agree with what your are saying and to add it is not just these projects are the one who will scam the investors it can also be the regulators scamming the project themselves so this is just to remind you that scams and fraudulent activities is a behavior which is already hard to remedy.