A lot of projects are doing such fundraising. First rounds are covering basic development and as you said after a certain period of time they are going for real money. I saw enough projects that raised funds in ICO and then launched an IEO to collect more funds.
This gives investors more opportunities to participate in good projects and this is being applied very well at the IEO. Now Huobi is applying this to help many investors have the opportunity to participate in the projects they propose and this makes many people have interest. I personally like to join round 2 or round 3 because it is a time when many people will tend to buy more