ICO’s are overwhelmingly for issuing smart contract-based cryptotokens (which can function as securities, utilities or both), not blockchain-based cryptocurrencies. A cryptotoken is akin to a stock or a bond being issued by a centralized issuer, although they’re not legal liabilities (not yet, anyway!). Normally and traditionally, a blockchain is not funded by the ICO tokenization process, but there’s been at least several blockchain-based ICO’s issuing cryptotokens for startup funding during the past year that will be later converted 1:1 to the actual coin at network launch (if it ever reaches that stage). That would imply there would be no pre-mining since the ICO process already raised the necessary funds. A good example of that recently was Electroneum. And because the ICO process is so full of scammers now, forking existing blockchains with coin airdrops is gaining momentum lately.
Utility cryptotokens clearly have no way to value themselves based on a discounted cash flow analysis unlike security cryptotokens. So buyers that are bidding them up to more than $1 or $10 are eventually gonna learn the hard way what “utility” really means. “Utility” is not money or at least it has very few of the attributes that would make it good money.
Interestingly, Ripple as a blockchain has the ability to issue cryptotokens as well, though unlike Ethereum its not democratic in that anyone can do so. So it’s ideal for activities such as gambling which require command and control regulation from top to bottom to be regulatory-compliant. So there’s even a choice for those that choose to be collaborators instead of anarchists.