As you know most of ICO's was scams and nowadays investors are not interested to invest in ICO's and new trend of IEO's is going well and investor are not investing in ICO's.
You are really right about the fraud in the ICO market, but there are also successful ico projects that gave very good money to their investors, the ico market should definitely return and be more transparent.
Only if regulation comes in 100% of ICO projects, otherwise people will invest in only 5% of all ICO projects, and of course in IEO.
Regulation will certainly come for both ICO and IEO, both are actually less regulated but ICO is worse since in IEO, we can blame the exchange if the project is scam and we can destroy their reputation, with ICO, you can't blame anyone if people behind the project are fake.