The idea is to invite unfavorable opinions and speculation about the products or services of competing businesses so that customers lose confidence in them. The expression “Fear, uncertainty, and doubt” describes the act of spreading dubious or false information about a business, startup, or cryptocurrency project. The term is also used to describe a set of negative sentiment that spreads around traders and investors when bad news comes out or when the market presents a strong bearish downtrend. Social media, with Twitter at the forefront, is a common tool for spreading FUD. And since most crypto enthusiasts source their information from Twitter, the impact is often non-negligible. In the short term, negative news and views about cryptocurrencies can push their prices downwards, especially when spread on a mass level.
It’s personal and completely different from marketing, which is drumming up general interest. Today, the biggest marketing FUD is playing the fear of sensor dust. Camera makers offer magic sensor cleaners to try to get people to buy their cameras over someone else’s.
FUD is sometimes a word used by the crypto community to describe the skepticism of cryptocurrency that is temporarily bearish for the inevitable crypto market. Many crypto enthusiasts will use the term to describe anything that opposes against bitcoin or crypto. They will sometimes dismiss those who are cynical of cryptocurrency as shills spreading FUD . Although FUD is deemed as an unethical practice, it is quite frequent in the business space.
How does FUD impact the markets?
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For our live charts & news, we’re using the awesome APIs from CryptoCompareandCryptopanic. And just like commodities, the major driving force behind the price of cryptocurrencies is supply and demand. While either of these can be impacted by various factors, two мајор influencers of supply and demand in crypto are FUD and FOMO. However, understanding what is FUD is merely a starting point. If you are trying to analyze the markets, you need to not only be able to define FUD but also try to understand how it’s created.
Second, the term “FUD” is primarily used with negative connotations, to refer to fear, uncertainty, and doubt that are used for manipulation purposes or that lead to negative outcomes . However, fear, uncertainty, and doubt are not inherently negative phenomena, and they can be reasonable and lead to positive outcomes in many situations. For example, uncertainty and doubt are important components of critical thinking, and as such can be beneficial in various fields, such as scientific research.
Similarly, there are situations where fear of something is entirely reasonable, and helps people avoid dangerous situations that could cause them harm. Furthermore, FUD techniques often involve various fallacious arguments. Similarly, this includes appeals to emotion, which are misleading arguments used with the goal of manipulating people’s emotions, with the most common of them in this context being the appeal to fear.
As a result, the original crypto’s value will reach zero, and everyone involved will experience financial consequences. However, history has shown us that this is but a pipe dream. Moreover, with institutional interest in Bitcoin and crypto rising, we can assuredly say that this will never happen. 99Bitcoins has even mapped all these BTC obituaries on their website, with more than 400 occurrences, and counting.
What is FUD
This makes digital assets incredibly volatile, especially when compared to other commodities like gold. If one brand has no product today, they’ll suggest something bad about a competitors product as part of a FUD campaign to delay potential customers from buying the competitor’s product until theirs hits the market. PCMag.com is a leading authority on technology, delivering lab-based, independent reviews of the latest products and services. Our expert industry analysis and practical solutions help you make better buying decisions and get more from technology. “FUD” means “fear, uncertainty and doubt.” In some ways, it’s the opposite of FOMO, or fear of missing out. This idea is particularly popular among cryptocurrency enthusiasts.
- In the wake of the cryptocurrency industry’s early success at gaining traction among investors and traders, new terminology has popped up among its fan base.
- So, that wraps up our short definition of the FUD cryptocurrency slang.
- FUD is widely recognized as a tactic to promote the sale or implementation of security products and measures.
- A notable earlier formulation is “doubts, fears, and uncertainties”, which frequently appeared in religious contexts as early as 1693, and which is still used today.
- The S&P Cryptocurrency Broad Digital Market Index was down as much as 50% in May 2022.
Find the approximate amount of currency units to buy or sell so you can control your maximum risk per position. From basic trading terms to trading jargon, you can find the explanation for a long list of trading terms here. PCMag supports Group Black and its mission to increase greater diversity in media voices and media ownerships. The feeling of fear and anxiety that you might be missing out on a potentially profitable opportunity.
This should help you see it coming a mile away and act accordingly. Remember, although often groundless, FUD can impact prices severely. There’s no reason for bagholders to hold onto their portfolio for dear life if they think the price is going to tank. You can exit the market temporarily and protect your gains. Just remember that when reentering, be careful of crypto shills endorsing various cryptocurrencies that might lure you into pump and dump schemes. As you might have noticed by now, FUD has a goal to discredit the blockchain space and cryptocurrency market as a whole.
Fud Definition & Meaning in Crypto
For example, the media will present Bitcoin as an elaborate scam or Ponzi scheme, without providing any basis on these findings. Anyone that has researched Bitcoin’s proof of work beforehand will immediately know that is impossible. However, for the mainstream investor, this might sound true. It would prevent them from adopting cryptocurrencies as a medium of exchange or investment instrument. As a fairly recent financial asset, people are only starting to understand Bitcoin’s applications and ramifications into the monetary paradigm of yore. There’s still a major misunderstanding on how cryptocurrencies work, what they represent, or whether they are some sort of elaborate scam or not.
By spreading questionable information about the drawbacks of less well-known products, an established company can discourage decision-makers from choosing those products over its own, regardless of the relative technical merits. This is a recognized phenomenon, epitomized by the traditional axiom of purchasing agents that “nobody ever got fired for buying IBM equipment”. The aim is to have IT departments buy software they know to be technically inferior because upper management is more likely to recognize the brand. Well, FUD usually presents itself in the form of general negativeness about cryptocurrencies. It can target one particular cryptocurrency like Ethereum, or attack a broader spectrum of the ecosystem, like DeFi or NFTs.
Words Near Fud in the Dictionary
Risk is something you take into account, not something to avoid altogether. Bonds, for instance, tend to have a lower risk profile than an S&P 500 index fund, which is made up of stocks of hundreds of companies. Cryptocurrency and individual stocks may have even more risk and tend to be highly volatile — experiencing wild swings in value, both positive and negative. The term FUD is commonly used on online forums when talking about investments, especially investments that are highly volatile, such as cryptocurrency.
The origin and history of FUD
There’s also a bit of a Chicken Little element to the spread of FUD — so many past purported threats to the asset class never quite came to fruition. A downtrend is an overall move lower in price, created by lowers lows and lower high. A downtrend describes the price movement of a financial asset when the overall direction is downward. Legitimate criticism of a certain cryptocurrency is a fair game and should be encouraged to motivate technical improvements. Determine significant support and resistance levels with the help of pivot points. In our crypto guides, we explore bitcoin and other popular coins and tokens to help you better navigate the crypto jungle.
Similarly, you can set up an optimal environment for considering your FUD, which you can achieve, for instance, by creating distance from the source of the FUD. Though FUD is often used intentionally as a manipulation technique, it can sometimes be created, promoted, and spread unintentionally. For example, if someone was the target of a FUD disinformation campaign, they what is coinzen might spread that disinformation further and promote FUD in others, without being aware that they’re doing so, and without being aware of the initial manipulation. People can experience FUD naturally in many situations, and FUD is often also used intentionally by various domains, such as business, media, and politics, so it’s important to understand this concept.
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These places have the best prices and service, which is why I’ve used them since before this website existed. Marketing is what companies do to get you interested in their products. In marketing, one company will pull a subtle trick to make you doubt other brands. Last month, the FUD centered around the U.S. infrastructure bill in Congress that contained mandates on tax compliance for cryptocurrency brokerages. Yet it didn’t do much to dent the bullish sentiment within the crypto-community, with Bitcoin, Ether and others continuing to rally. August volumes on Binance, the world’s largest crypto exchange, jumped 65% in the month and open interest in Ethereum futures and perpetual futures jumped 41%, according to researcher CryptoCompare.
What traders choose to buy or sell means balancing how much they are… Even when FUD is not the intent, what may appear as a strategy is often nothing more than one department not talking to another inside today’s gigantic tech empires. Coordinating ever-changing new features and product names with the sales, marketing and advertising departments is not trivial, and no matter how https://cryptolisting.org/ hard they try, companies unintentionally slip up. Another approach is to publicly change plans frequently and present a moving target for competitors. This keeps customers from purchasing third-party products for fear they will not interface with the new hardware or software coming from their existing vendor. NerdWallet strives to keep its information accurate and up to date.