That’s probably a simplistic view? An ICO obviously introduces trust in a third party (the company issuing the ICO). Does that mean all ICOs defeat the purposes of crypto? To the degree that your view of crypto is that it is all about decentralized, quasi anonymous money transfer yes. To the degree that you consider the other benefits of crypto assets, no. To add weight to the latter view point, I’d argue that Ethereum was the first ICO. Is the whole “purpose” of crypto negated with Ethereum? That’s a hard position to defend imho.