Why can unregulated Altcoins fail?
Altcoins fail because they don't have capable founders and developer teams but not because of lack of regulation on altcoins.
Do you see many business failed under strict regulations?
Do you see bank collapsed, bankrupted under already existing strict regulations?
Many other examples beyond blockchain, cryptocurrency and altcoins about failures of regulations to protect people from scam companies.
An opposite question:
Do Bitcoin need regulations to succeed?