They raised crazy amount of money and the product they offers isn't even going to need that much money, if crypto space is a well regulated place many of them would have been arrested and face the panel already.
No regulation will save you from that.
The investors should ask some question and get a revaluation.
Exactly, that's why they keep doing it, because no regulation can really safe investors from getting milked by bad and fake developers in crypto space, this is why I don't invest in startups, I can see what CZ is doing lately, personally pumping all projects that raised money through their exchange to draw attention.
I think startups should learn from this, in the past many projects that made it to top 100 are mostly from Binance launchpad, Polygon and Harmony was one of them, there are many more that became successful, the difference is they gain loads of attention using the exchange reputation, the same thing will happen this time again.
Today people don't want to work harder, they have a dream but they look for the fastest way of achieving the dream.