unfortunately for these people, investing in altcoins is not diversification. it is taking bigger risks for smaller rewards. a real diversification of your money is what you are doing which is basically investing in other markets like stocks market as the alternative.

altcoins, from what i have seen so far, are only good for day traders and pumpers. otherwise it is not such a good investment to go in an altcoin, specifically the ICO tokens which have no future.