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.?
Your question is very good and there are really a lot of speculators looking at exchanges, not analysis of the project. This is a general situation and that is why IEO projects have recently been bought by many investors but the value still goes down and they suffer losses.
Some people took to the bitcointalk forum to complain that they had put their faith in the wrong place and blamed CZ.
So this is a great lesson for investors just because of their popularity, we need to be more alert because this is a decentralized market. The risk is very high in every transaction!