This is the main objective of the IEO but in reality, Exchange doesn't care about the project development after IEO. So basically you put your trust in exchange decision making and once failed which might happen since human error is always possible then investors face major risk since most of them will invest huge chunk of money because if there trust. I will give some examples, CelerX launch on binance launchpad, They have successful IEO and look now what happened on the project and the token valuation. Those investors that still hodling suffer from huge less.

But we can't deny that IEO is much safer than ICO but still a risky investment compared to what they are claiming.