I mean I get it, exchanges, ICO's, etc, want to be on the safe side -- although what I really object to is these places accepting my crypto first and then telling me that I need to give them a mugshot if I want to use it, or withdraw it again. It's a nightmare.
I deeply understand if exchanges or wallets that we are using requires KYC, but when it comes to ICO a new coin in the market? That's a big NO because I can't see the sense at all. We know and they know to themselves that they're coin is still insignificant and not yet influential so why would they require our personal infos? This kind of scenario can be compared to a man buying a bottled water in the convenience store but need to tell his name first before paying, seems pointless right?
If that will be the new system in every ICOs which will be released then probably I'm sticking to bitcoin forever.
I think the reason ICOs want KYC is so that they are future compliant against SEC action. We've already seen the SEC look into Ethereum and other altcoins as into whether they are securities or not and I think ICOs just want to cover their own backs.