New projects absorb the incoming money flow, which does not benefit the industry, but enriches individuals.
This is true and we can't deny it. We, unfortunately can't stop the cash flow and since blockchain gives so much freedom and money to individual pocket is increasing.
But it is about freedom and rights to create new project. Regulation to control it, is also highly arguable.
I dont know what the government are still waiting for to establish a regulatory body for this since they too are already picking interest in cryptocurrency first from the digital asset of it, if they really want to benefit more from cryptocurrency too, they need to be able to provide adequate security for its users now that it concerns them, because whatever affect their citizens fund will also affect the economy of the country.
All of these altcoins that we see in the market, majority of them are the ones that really have real use case, while many of them have nothing to really offer other than to provide a scamming project that looks genuine to milk money out of peoples pocket. Investors are the one that need to just be smart about investment now.