The lack of regulation leads to the fact that investors are not protected, completely. Statistics of start-up projects seemed to say that only 1 out of 10 (or 20?) Startups survive. ICO is a way for failed, poorly thought-out ideas to get easy money without commitment and not even embark on a project.
It's due to the market that some good and legit companies ICO tends to fail. Before ICO shows good trnd on crowdsourcing since many get benefits and see it's potential for success, scammers just ruined the situation more.