But the cryptocurrency launched late last year by viral phenom Hailey Welch was a perfect example of how so-called meme coins often work: A person with a public platform announces a new token, and early buyers rush in and see the value of their “investment” soar as others buy in later.

Market players say the meme coin frenzy has become exhausting. "Sentiment now is probably as low, or probably lower than the FTX collapse."