Scam project taints the whole crypto. Just look how it affected ICO. It made investors lose faith in ICOs which resulted to majority of ICO failing and legitimate and good project not gaining enough budget for project development.
Exactly, we are experiencing this type of activity with the companies who have the ability to develop the project. They cannot able to raise the funds during the crowdsales but when it comes to the fake project they are successfully raising the fund. That's many don't have a good opinion towards the ICO fundraising.