Yes the only thing worse than pre-mine is these so called "IPO".
For those who aren't hip to the IPO game let me lay it out for you step by step.

1. Dev creates alt-coin with a pre-mine say 2%.
2. Dev offers coins for sale before mining starts, sells say half of the pre-mine for BTC, LTC, ect.
3. Dev uses IPO proceeds to pump the coin price up, people without knowledge of the Dev manipulation, see the price rising and invest additional coin, price rises even more.
4. Dev cashes out his pre-mine after the price is inflated well beyond what just pocketing the IPO proceeds would have brought.
5. Price crashes, dev abandons coin, maybe it dies right away maybe it doesn't.
6. Dev doesn't care, moves on to next project, maybe under new name.