There's a theory that people with enormous paper ETH gains are just diversifying by buying into all the ICOs. And the ICO "fortunes" are also on paper; I don't know if there's enough liquidity to sell the $500M per month that ICOs are bringing in.

What i don't get is how an eth token gets bought in eth, and creates millions of dollars of a new currency

yet eths marketcap doesn't go down?

ICOs are probably best understood like companies, not currencies. As you observed, an ICO doesn't create any value since it's just moving ETH around. If the token value increases relative to ETH then you could say value has been created.

How many companies do you know that issue new shares every hour?

None, and neither do most ICOs. But that doesn't somehow make a token not a share.

Tezos, staus and filecoin all have inflating supplies, they are the biggest icos in history. Bancor is essentially uncapped in how many tokens can exist.

Between them they've raised $500m.

I'll have disagree with you on this

because money is a bet against bets against bets (the day before and the day after snap IPOed--was $25 billion really created? Where did it come from--and where does it go?)

And part of how the money supply has billion-xed since 2000 and no one seems to notice

Old vs. new money. It's a lot easier to get money from 15.000 people who got so rich with BTC and ETH, they have money to spare, than to find and convince 15 Venture Capitalists to put up 1.4 million.