This case has become normal for every bull run we encountered.
Just like what happened last 2017 - 2018 bull run, a lot of money poured in shitcoins, ICO fever with Ethereum before started, most of ICOs before already lost above 80-90% after few months when we experienced huge dump from all-time-high $19,000+ and below $10,000 to $5,000.
It was an awful experience especially for those new people who just started cryptocurrency and lost very huge.
Worse than that I believe is that now people are making you think you are no longer pouring Bitcoin and ETH into these stupid IDOs,,, because of the wrapping and all those "layer 2 tokens". I bet you one of the big Layer 2s will fail and lose a lot of people's BTC and ETH especially, and then the domino effect will be unstoppable.