Am I missing something with regards to the #ICO craze?

Image credit: Blockgeeks

Am I missing something with regards to the #ICO craze?

1. It is an unregulated mechanism to raise funds.

This seems to be the main #USP at the moment. As soon as regulations are implemented, I cannot see how it will remain a preferred mechanism for fundraising. All the functionality created by the blockchain for the purpose of an #ICO is already sufficiently available in current financial markets, just in different forms.

2. Where VC and PE investments are based on trust in the entrepreneur and the underlying business, it would seem like trust is completely outsourced to the blockchain now.

Does the mere use of the word blockchain, suddenly make the entire process and all it's moving parts trustworthy?

3. There is no "liquidation prefs" etc when raising funds through an ICO, but these are also added to a deal by choice in the case of VCs

There is a reason why VCs created these "checks and balances" in their agreements when investing. #RiskMitigation

So in my view, all the mechanisms that are used during an ICO are already available to investors and entrepreneurs. I therefore struggle to see the "disruptive" side of an ICO. In my view it is just another mouse trap...

If anyone can convince me otherwise, I am more than willing to learn.

Thanks