ICOs will bounce back (especially under the form of STO) but utility tokens are dead in my books.
but all the way it would be the different form of ICO. now we can say that IEOs are the same ICOs only with exhcanges as a middlemen.
Exchange as the middle man is what makes people boost their confidence in investing again.
Investors never leave the market, they just need a proper platform that would give them security and this IEO gives them what they are looking.
ICO will still exist but it needs to improve, if the government will intervene it would help, without middle man it's alright as long as those ICO projects needs to register first in a certain government agency before they can start, they can either be denied or approve based on the guidelines.