It is very true that many alt coins were hyped and pumped based off of pure speculation instead of actual practicality and usability. Lack of knowledge about the market is definitely a downfall to the market increasing as it should for the reliable coins.
Regulations and restrictions also create a lot of FUD and people begin thinking it is 'the end' because they have already been anticipating that.
Not to mention it doesn't help when you have BS companies like USI Tech and Bitconnect giving crypto a bad name.