It's a pure greed from the developers to pool in more money and these various phase of IEOs are not communicated to us when we initially invest in their projects and then it's really a tiring procedure before we get our tokens or money back and then we gotta either sell it off immediately which causes investor's dump or else take the hit as most of the coins go through pump for first few days of listing then takes a hit.
I know we cannot blame the developers or investor's alone because sometimes bounty hunters dump the tokens and sometimes market doesn't favor. It's good to avoid ICOs for a while.
I think that it was when raising of fund through ico started becoming too difficult that they introduced that Multiple round of ico, unlike before that a project could even raise the whole project moment within 2 weeks but now, I dint think that even works again. Some of them don't even pass the first round talk less of going to the second phase and I think it is not right for you to put much blame on hunters dumping a project.
When it comes to a project to dump, it would take millions of dollars to be taken out of the project marketcap for it to be qualified as dumping, then ask me, how much exactly do these people allocate for hunters, and how many hunters really worked for them for it to have had major impact. The people dumping their project are still their investors that they have allocated thousands of the tokens to as gift.