I highly doubt that most of the investors in ICOs are all that interested in the core business. They're interested in an arbitrary security loosely linked to the core business appreciating that is referred to as a token because calling it an asset/security would require more regulation.

Always amazed at some of the threads that pop up in that world.

"I invested 50k can someone pls explain how this works?"

I mean, you realize that penny stocks are much the same. People don't care much about the validity of the underlying business. They want to make money. Often the penny stock (or alt coin) has solid enough technical fundamentals , to merit an investment. Don't tell us it's risky, we fucking know. Don't tell us we're dumb for investing in something we know nothing about -- we know we are gambling and likely going to lose. There are too many millionaires be minted in this crypto world to be too dismissive of it.