The new project under ICO will face a difficult challenge because they need to prove that they don't give a fake project back to the public. If that can happen, the ICO can come back, and maybe they can get many investors like before.
Are you talking about regulation to get investor confidence other than that there is no way to identify whether the project is fake or not even if you drill them about the project you cannot get a clue whether the project is legit or not, so unless there is a regulatory body monitoring those you will not get back the investor confidence.
Maybe the regulation can give trust to the investor to invest in that project. Or maybe the regulation can be made in the country which the project come from, so they can register the project before the developer and the team's launching the project in public. I think the investor will see that the project already passes the verification from the regulatory in that country, so if something worst happens, they can ask for help from that regulatory to investigate.
It is a big challenge for every developer who wants to start the new project because they need to change the people's mindset that the project will benefit them.
If a developer is having a viable project that can change the industry then they will always find investors, the problem here is that half assed developers who want to experiment and who do not want to take any consequences are raising the money and that has to stop.
What you are saying is right. Many of the developers are not seriously to continue every phase from their project, but they say that the market is not good to continue the project, so they delay the phase without telling the reason. If they can be honest to the public, especially to their investor, I guess they will understand for the reason, and they will not complain to the developer and the teams.