Completely agree with you. Bad money, drives out Good money. The money that was suppose to go into good projects will be going into sham projects. It has multiplier effect as it will erode peoples confidence from both the directions.
I have seen so many people who have been investing in Cryptos for couple of months not realising the circulation of coins and only looking at their price. People should start looking at Market Caps and Normalised Prices of Cryptocurrencies.
Until that happens and there more tools to see right through the pump and dump schemes Crypto will be highly volatile and many innocent people will loose their money.