I never understood why cryptotraders and exchanges support ICO's, my reasoning is this: An ICO gets funded, then they do what, they SELL the BTC they raised for fiat and push the price dive on BTC, thus taking all those BTC out of the trade environment, anyone thinking that an ICO would reinvest into the exchange is naive. This hurts everyone, even the exchanges. You might say "Well the exchanges get fee's on ico" well that is true, but they are losing all future potential fee's on those coins, if they had continued trade on the market.
So in Short - ICO's are killing Bitcoin and CryptoMarkets.
I agree that crypto ICOs are killing bitcoins and it is because of a number of reasons:
1) Scam ICOs : Most of the new coins are scams and they are launched just to fool the people and get their money. When people loose money in these, they blame whole crypto community for this. As a result, the image of bitcoins is affected as well.
2) Bitcoin share decreasing: With so many ICOs being launched everyday, people are selling their bitcoins and investing that money in new coins. They hope that they will be able to make much more profit. As a result, the demand for bitcoins is decreasing.