I don't find it particularly sad because SEC made their stance clear in quite a few occasions that they are not going to favor ICO funding activity citing risk of fraud. The have issues numbers of circulars on the same topic and never encouraged us to invest in ICOs. For example,
https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_coinofferingshttps://www.sec.gov/news/public-statement/statement-potentially-unlawful-promotion-icosNow if I look at the current scenario, I see that majority of the ICOs are ending up being scam and running away with investor's money. Majority of the ICOs have never come up with their promised products. Majority of the times, investors lost their investment. There are definitely exceptions as we have seen ICOs that are real and doing well, but the percentage is very less and not particularly encouraging.
So I personally support the stand of SEC. If a startup has a great idea and vision to stand out of the competition, they can raise VC funds as well. If the idea and the execution plan of a start up is well designed and has the capability to create exception, people will recognise it eventually.
But until, we found a solution to the fraud happening through ICOs, it is better not to let it happen. My statement may differ with many people of this forum, but that's my personal thought.
