Some good points here.

The ICO is meant to mirror the more corporate IPO, but actually it's closer to crowdfunding. And, as @aschatria says, there are fakes in all walks of life. I've not yet participated in an ICO, though I'm keeping an eye on a couple right now. I think the way to avoid the scams is through basic research. Who's on the team? Do they have a track record? Have the created anything yet? Have they launched? Are they solving a real problem? Do they have a workable solution?

And, of course, as in anything crypto, don't invest money you can't afford to lose.