So the value of the LCO to the investors will always stem from the value of the solution they are providing with the token.

Equity does the same thing for an investor. to me LCO is way for a company to raise a little bit of capital, and then create a derivative that lets investors bet on the value of the company/solution.

Anyway, I am sure there is a set of investors looking for ICOs/LCOs and may be for companies, LCOs offer value as means to raise capital. I do see sense in decentralised entity doing ico, as tokens may have voting rights or the equivalent of that. But I am not representative of the entire investor community.

Thanks for your response. Wish you good luck!