A term that is very common in cryptocurrency-related forums and online communities. What does it stand for and what is its aim?
What is FUD?
FUD stands for Fear, Uncertainty, and Doubt. The term is used when an individual is attempting to create a negative state of mind to other investors by presenting unreliable data that show an upcoming price drop in one or more cryptocurrencies.
Who uses FUD and why?
It has been observed that FUD is often spread to the public by large media channels and influential personalities. Their goal is to lower the demand and purchasing power in order to either stabilize or cause a drop in a coin’s price. Essentially, one could compare FUD with fake news or barely relevant news that is “blown out of proportion”.
FUD in the context of cryptocurrency
Many media outlets that focus on creating clickbait content will publish news that refers to Bitcoin as a “bubble” or a tool used for “illegal activities”. These claims, of course, come without any substantial evidence and their only aim is to get more traffic to their website. The same principle applies to TV channels, articles published by several financial institutions and other parties that can benefit from the public’s emotional response.