What does FUD mean in Crypto? FUD stands for fear, uncertainty, and doubt. The expression in cryptocurrency describes a psychology trick to spread doubt and fear among investors. Which would cause that certain coin or token to drop in price.
Example of FUD: “After Bitcoin hitting $42K, we started getting a lot of FUD from mainstream media.”
Who does it benefit? Probably the people who have taken a short position of the coin!
FUD occurs quite often when the market is going through a bull market. When the price of a cryptocurrency is rising, it often divides investors into two categories. One group being investors who think that the price will keep rising. And the other group being those who are afraid of the overvalued prices.
False news, as well as unfavorable opinions, about the project, startup, or the business, will usually occur when its coin or token is rising, such that investors and customers will lose confidence in it and sell it. Essentially, FUD targets the investors’ emotion of fear.
In fact, the term FUD started to circulate around within the stock market back in the 1970s. But in the nascent crypto market, FUD specifically refers to anything that intends to spread “fear, uncertainty, and doubt” in a cryptocurrency – in particular, Bitcoin.
In the past few years, despite Bitcoin’s significant growth in price and adoption, mainstream media and institutions have repeatedly attacked Bitcoin on its credibility.
Otherwise, FUD can also mean the practice of dissuading people from joining the cause of a cryptocurrency, so that you can drive the price down and buy it cheap. However, sometimes, FUD can also be better characterized as “Facts-U-Dislike.”