My understanding for IEOs is basically instead of project handling raising funds etc. It will be for an exchange to do so.
An IEO hosted by Yobit or Binance can clearly not be compared. In other words, the exchange gives more credibility to the project regardless of whether it's worth it or not.
Am I the only one who thinks this is actually a bad thing and make people focus on the exchange hosting rather than the actual project and what the team is offering etc.?
You are right, people are after the profit to be made thus focusing on the exchange hosting the IEO than on the actual project. The end result of this is; first the exchange, in this case major exchanges gains more popularity as well as making more money, in the long run attracting more IEOs. Secondly, the project whether good or bad ends up having a successful IEO, if it's a bad project, investors will lament but have no one to hold accountable while giving more negativity to the nature of IEO. However, by rating most IEOs now, it is evident that majority aren't living up to expectations because as soon as profit is made, investors moves to the next; but if it's a good one, they will stick around.