Mood rings operate based on liquid crystals that change color in response to temperature variations, which are believed to correlate with emotional states. While they can indicate general moods, their accuracy is limited due to individual differences in body temperature and external factors like moisture, which can damage the rings. Users often find them fun and nostalgic, recalling their popularity in childhood, but they are not reliable indicators of mood. Anecdotal experiences highlight that mood rings can sometimes signal emotions like anger, but overall, they are more of a novelty accessory than a serious emotional gauge. The conversation also touches on the historical context of mood rings and related products, like hypercolor t-shirts, while humorously referencing personal experiences with mood rings and their limitations.