I never understood why cryptotraders and exchanges support ICO's, my reasoning is this: An ICO gets funded, then they do what, they SELL the BTC they raised for fiat and push the price dive on BTC, thus taking all those BTC out of the trade environment, anyone thinking that an ICO would reinvest into the exchange is naive. This hurts everyone, even the exchanges. You might say "Well the exchanges get fee's on ico" well that is true, but they are losing all future potential fee's on those coins, if they had continued trade on the market.
So in Short - ICO's are killing Bitcoin and CryptoMarkets.
Not all ICOs sell for fiat. Some send payouts in eth, for example.
I see your point, those who want to raise easy money destroy the market. But that's how it always worked, far before the crypto came in. There should be some regulations, in order not to kill the potential of bitcoin.