KYC becomes the new trend because of too many scam projects lately. There are many in crypto that are against KYC but later on some of them understand that KYC is needed in order for projects to get approval from their countries laws.
KYC is indeed needed to see about the investors that are in it, and it is needed to judge whether the investor is genuine or just a bot and I see the KYC side with that function.
But to do KYC investors must be careful to do KYC especially projects that don't have much trust from the community