The risk is that the teams may way under-estimate how much work it is (And I think that's what's going to cause them to fail)
but they are a lot more ambitious than you are characterizing.
https://davidgerard.co.uk/blockchain/icos-magic-beans-and-bu...
Look up the EOS fine print. They took down the PDF, but I kept a spare:
https://davidgerard.co.uk/blockchain/references/EOS%20Token%...
TODO this evening: write up a blog post on the ICO for (I am not making this up) synthetic rhino horn dick pills.
These days ICOs are cloning the same smart contract template and just making small edits to it.
Most of the time they barely have any other code than just the slightly edited smart contract template and white paper which is also pretty much a copy paste with buzz words relevant to their niche.
And based on that they are raising millions of dollars.
Of course there are couple of exceptions of projects that actually seem to have some tech foundation (like Sia for example) but these are rare. Scam copy cats without any tech are majority of ICOs.
Their reasoning is "we have an idea, let's raise millions of dollars and we will hire bunch of devs to write the software". Mostly founders are non technical "idea people" so I would doubt their ability to even know if their idea is feasible.
Projects which start with strong technical foundations and don't try to raise money to build their tech (putting cart in front of the horse) are the solid ones. Projects which have no tech and raise money first, those are not likely to succeed imho.
For example? What ICO idea is not a previously failed startup? Distributed file storage that's been built a few times and each time turned out to be painfully slow and impractical? An iOS and Android port of the wallet software? Yet another browser?
(https://news.ycombinator.com/item?id=15077117)
You can build an altcoin in basically no time, on-demand using a web frontend. How hard the shell company piece is I have no idea.
It really doesn't take a lot of talent or hard work to launch a coin from your garage these days.
I think that's kinda why people are welcoming this move - there's a lot of trash coins and trash ICOs with no hope of anything ever coming from them, with a relatively low input of time and effort. But because they offer trade-able tokens and some of them might take off, and at least some of them might get a hype-cycle and increase in value whether there's any underlying value or not, and it's all new, shiny, crypto-magic-money...
