Its the same with ICO but with one difference: you can see how much for real project collect. Also team should pay for launching theirs IEO on the exchanges. Sometimes its a huge fee, so you can understand that team is interested in what they do
It's more transparent consider about the exchange site was taking all of the control over icos to handle the process of the funding by the investors. that's why if it's really profitable compared with ICO. and instant listing is the main guarantee that offered by exchange site.