We have decentralized exchanges and they can always dump that.
The only effect on the ETH price is the lack of money coming in, unlike before where ICO is very popular, people are buying ETH to buy the tokens
in the ICO in order for them to invest, now most ICO are scams so no fresh money that are coming in.

Temporarily it will affect the price of ETH, that's why it has dump 10x, but soon it will rise back again.

maybe because it's easy to make tokens from the ethereum network that makes everyone able to make their own tokens. of course they can make ico and make a retirement plan that can benefit them. but that would be very detrimental to ethereum where trust in the platform could decline if it continued like this.

Only few investors will loss, and those are only newbies.
Anyone can make a tokens from ETH platform but proving the team's legitimacy is a crucial thing, if investors are educated, they won't fall for this type of scams.