It would be virtually impossible to design a smartphone, especially one that complicated, for less than $2 million.
My opinion.
That's why IGG and KS are complicit in this.
Anyone who knows anything about the industry knows that the promises being made are completely impossible to achieve. The backers are encouraged to back these projects without having a full understanding of the risk involved and, having heard of IGG or KS, believe there is a legitimacy to the project because it is on that site. The creators tend to be young, naive, doe-eyed morons who don't understand the technology or design, and just presume that engineers are paid to build what designers create, and anything which can be designed can be created.
Then those designers run into a brick wall called "reality" when everything takes 10x as long and costs 100x as much as they expected. So they disappear from the crowdfunding website and offer sporadic and shitty updates along the way to blowing all their backers money on a stupid fantasy.
Kreyos, Lifx, Mu Thermal, Battery Vampire, 30-second rechargeable battery, that modular phone, ORSTO watches, Agent smartwatch... all of them have either not delivered or haven't come close to delivering on the promises they made.
The only KS projects that seem to ever work out are the incredibly simple ones - and even then, they deliver very late and tend to have unhappy backers.
Regulation will be coming soon.