Already you knowv what is ico purpose,my answer for all other your questionis yes,it can be profitable
Follow basic SEC rules,untill token is not in use it can be recognised like a non-security and cant be traded
If token is in real use than it can be recognised like a digital currency and can be traded,example is Linden dollar,so before investing take a look whani co mvp prouct will be available,is there any workable alpha,beta etc.Look team,does team members have real historical experience ,check it for yourself ,find in google,if cant find better not invest,If thay provide his LinkedIn,check his LinkedIn,whan his Linkedin is registered,linkedin contacts etc
Check doas team is taking care of legal aspects,decentralization,tokenisation all that is empty slogan