Most funds don't have the sophistication to manage a long / short liquid book and are more comfortable with VC like deals
ICOs also need somewhere to put the $$ they raised and the easiest thing to do is buy more
Ex: $10m invested into QTUM for 10% creates $100m in MCAP
Same $10m is then invested in CELR for 10% creating another $100m mcap
Initial $10m creates many multiples of its value as its passed around like a baton
Crypto is VERY fragile
1. crypto fund invests $10m into project YY for 10% of tokens. This creates $100m MCAP and $90m of YY tokens held in reserve
2. project YY has plenty of tokens so doesnt need all $10m. They invest that $10m BACK into the fund
3. Voila. $100m of phantom MCAP