but in IEO investors are given security, I think if the exchange opens IEO for fraudulent projects, the good name of the exchange will be bad. and they will be able to lose a lot of trust, I personally still see method in IEO because at this time IEO is just young, still have to see the potential for much longer
A good name only affects a reputed exchange but for others, this does not mean anything. Look at Idax for example, someone reported it as a fraudulent exchange because it scammed the project that ran IEO on their platform and their users. Potential or not, the demand for the IEO has decreased. Demand is everything, without demand IEO or ICO are nothing.