Why investors would invest in ICOs, if it is not profitable. During the bearish trend over the past one year's, most tokens price drop after listing on exchanges causing a lot of loss for the investors, so now they are reluctant to invest in ICOs.
These price drop they experience after listing was initial blames on Bounty hunters, and them we saw that the percentage allocated to hunter are so insignificant to curse massive price drop, and then we moved on to attacking investors for dumping the coin, then we realized too that investors are not the ones, investors only dump coin when they have made up to 2x of their investment but what we see now is that, ico price gets dropped in price the moment in enters an exchange, so this automatically implies that some of these developers themselves are the ones doing this which is quite unfortunate and discouraging for investors.
Although I also got to know that it is a mechanism design by them also to shield the system from experiencing sudden dump by investors, at least investors will learn to stay longer in the project if they dont see any favorable price to make them dump the coin.