What is the significance of "Ig"?
1. not honourable in character or purpose.
2. of humble origin or social status.
It’s a play on words, the Ig Nobel prize is the ignoble cousin of the Nobel prize.
The problem is that many classical (and later) scholars, historians and poets were prone to uncritically repeating stories without doing any fact checking, or just making stuff up to fit the narrative. The same is true for their etymologies.
Socrates and Plutarch in particular have reputations for their imaginative etymologies.