On Twitter, you might see crypto enthusiasts say things like, "Don't listen to FUD, just HODL your bitcoin and head to the moon." So, what's FUD? If you have decided to catch up with the crypto community, you must have knowledge on what crypto slangs mean. But don't worry, this guide will enlighten you about it here.
What's FUD?
FUD is a shortened form for "fear, uncertainty, and doubt." Fear, uncertainty, and doubt are all used as propaganda in sales, marketing, public relations, politics, polling, and cults. FUD is a strategy for influencing perception by disseminating negative, dubious, or false information, and it is a manifestation of the fear appeal.
It typically refers to a fear of cryptocurrency volatility and the prospect of a project's value dropping to zero in everyday speech. FUD can, however, be more dangerously interpreted in the context of cryptocurrencies.
For instance, FUD has been successfully employed as a marketing tactic by some projects or bad actors who wish to undermine the community of another coin by driving their supporters away.
What is FUD Example
When prices fluctuate wildly in one direction or another, mainstream media outlets will refer to the "Bitcoin Bubble." While established cryptocurrencies such as Bitcoin can recover from FUD, it can be crippling for new coins, despite the fact that there are ways to combat it through marketing, social media strategy, and good old-fashioned word of mouth.
The price of bitcoin peaked at about $20,000 per coin towards the end of 2017, which is one of the most notorious instances.
However, as soon as it reached $19,500, a powerful wave of FUD hit the markets, sending the price of Bitcoin tumbling from its highs to lows of about $6k per coin in a matter of days.
Some blamed the abrupt drop on US regulators imposing large capital gains on Bitcoin owners, while others pointed the finger at the launch of Bitcoin futures trading that allowed for market manipulation.
What To Do When FUD
You must recognize that FUD affects everyone as a new investor in the cryptocurrency market and that avoiding it is a crucial component of becoming a "good" trader and investor.
It's crucial to keep in mind that you should never panic sell as a result of 'bad' news that spreads FUD. Remember to do your research and compile data from numerous sources while keeping an objective eye on the news before you worry. You have to spot warning signs when they emerge and those potential attacks on your investments.
The Bottom Line
FUD means “Fear, uncertainty, and doubt”. While it is true that FUD attracts a lot of negative attention to a cryptocurrency, there are occasions when investing amid periods of unfavorable news and market-wide panic can be advantageous. This could land you a good entry-level position. It is important to note, however, that some FUD news and events can be devastating to a cryptocurrency, causing prices to fall by 80% or more. As a result, it is critical to remember that not all FUDs are created equal, and strategies should be implemented accordingly.
