Many companies launch utility tokens due to lack of clear regulations in regards to security tokens. However relatively large number of those tokens don’t make any sense and at best their utility functions are very weak.
Utility tokens are much easier to launch than security tokens because they are not regulated. ICO company can do online marketing and offer their tokens to non-accredited investors and retail investors. They do not have to incur the heavy expenses typically associated with regulatory compliance.
But this is all changing now. Year 2018 will be the year of security tokens.