Definition of FUD factor

It is the spreading of misinformation of a cryptocurrency by uninformed sources. In our crypto guides, we explore bitcoin and other popular coins and tokens to help you better navigate the crypto jungle. From basic trading terms to trading jargon, you can find the explanation for a long list of trading terms here. Sign up and we’ll send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money. In crypto, there’s a particular term for taking a long-range approach to investment.

fud meaning

He has more than 15 years of experience as a reporter and editor covering business, government, law enforcement and the intersection between money and ideas. In these roles, Andy has seen cryptocurrency develop from an experimental dark-web technology into an accepted part of the global financial system. 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.

Origin of fud

This underscores the importance of having proper expectations for the cryptocurrency industry. Don’t expect a volatility-free, get-rich-quick experience. For most retail investors, maintaining a diversified portfolio of digital assets and stocks involved with blockchain and crypto tech development is very important. Digital assets are here to stay, so there’s no need to get hung up by FUD, but a healthy dose of caution will serve crypto investors well over the long term. In other words, FUD is a strategy that doesn’t take into account the true value of the products or services. It consists of spreading a negative sentiment regardless of technical merits, usability, or quality.

  • It consists of spreading a negative sentiment regardless of technical merits, usability, or quality.
  • People with diamond hands hold onto their crypto for extended periods of time, not suffering from short-term fluctuations and benefiting from long-term growth.
  • The authors further found that consumers were willing to pay a premium for local foods.
  • A period of strong selling activity, where investors give up their positions and sell their holdings as qui…

This meme originates from a 2011 motivational video by a bodybuilder and online influencer Zyzz . After circulating around 4chan and Reddit For 9 years, it was widely adopted by the crypto community. Many people decided to jump on this bandwagon, entrepreneurs and investors alike. Many ICOs were authentic and eventually lucrative , but man it turned out to be out right scams, and this severely damaged the reputation of crypto in the long run. HODLers have online support communities where they tell each other to man up and keep holding, with rising and plummeting prices alike. We actually have a whole article coming up on this topic!

Sentiment, or market sentiment, refers to the highly subjective feeling about the state of a market. Market sentiment represents the mood of financial markets and the general feeling among traders,… FUD, on the other hand, is mostly slander and baseless accusations about a cryptocurrency as a technology, the people behind it, or the people invested in it. Fear, uncertainty, and doubt, a marketing strategy involving the spread of worrisome information about a competing product.

food | American Dictionary

The S&P Cryptocurrency Broad Digital Market Index was down as much as 50% in May 2022. As measured by the original cryptocurrency Bitcoin’s price, other big downturns for this emerging industry occurred in early 2020, 2018, and 2014. The FUD tactic has appeared frequently in tech as a result of the competitive nature of the industry and the similarity between products.

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. Techopedia™ is your go-to tech source for professional IT insight and inspiration. We aim to be a site that isn’t trying to be the first to break news stories, but instead help you better understand technology and — we hope — make better decisions as a result.

Learn about crypto in a fun and easy-to-understand format. It’s OK to revise your outlook based on new information, but second-guessing a decision because of a news cycle can be a recipe for disaster. A temporary decline in value might not say much about what will happen five or 10 years from now. A hostile takeover strategy, where a company is offered to be bought at a higher than target rate. Needs to review the security of your connection before proceeding.

In a “pump & dump” scheme, the scammer tells everyone online about how a particular coin is “going to the moon” and can alone fund your entire retirement. What he doesn’t announce is that he owns a huge chunk of the said currency. The Employment Situation report provides insight into the U.S. job market such as the monthly change in nonfarm payrolls and the unemployment rate. The expression “Fear, uncertainty, and doubt” dates back to the 1920s, but the acronym “FUD” started to be used around 1975. Determine significant support and resistance levels with the help of pivot points. Find the approximate amount of currency units to buy or sell so you can control your maximum risk per position.

This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Then, that person is left with “a coin they don’t want at a price they can’t sell it .”

FUD definition and meaning

We believe everyone should be able to make financial decisions with confidence. The asset-based approach takes into account the company’s assets for valuation. An asset class is a classification of investments based on common traits, behaviors and laws. It is widely used not only in the cryptocurrency space but also in … The expression “Fear, uncertainty, and doubt” dates back to the 1920s, but its short version “FUD” started to be used extensively around 1975. A well-known example of FUD happened when Gene Amdahl left IBM to found his own company, leading him to become a FUD target.

fud meaning

The information we offer does not constitute investment advice. With all the attention, jargon that was once just used for inside jokes in early cryptocurrency chat rooms and on Reddit threads has now become a part of the dialogue. SCO stock skyrocketed from under US$3 a share to over US$20 in a matter of weeks in 2003. It later dropped to around US$1.2—then crashed to under 50 cents on 13 August 2007, in the aftermath of a ruling that Novell owns the UNIX copyrights. “If you just drag this out in a typical litigation path, where it takes years and years to settle anything, and in the meantime you have all this uncertainty clouding over the market…”

What Is FUD?

9 Blockchain Stocks to Invest In This form of ledger technology is what’s behind cryptocurrencies and other tech trends. These schemes are often orchestrated through apps like Slack or Telegram, he adds, and advises curious chatroom readers to beware of such gimmicks. An investigation into “pump and dump” schemes by Business Insider found the practice to be an “open secret among many cryptocurrency traders.”

What if I don’t ever want to see this again?

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. For Sam Bankman-Fried, chief executive officer of exchange FTX, a lot of the FUD-filled headlines these days don’t necessarily represent a more negative period for crypto. “There’s just a lot more attention focused on it and particularly a lot more attention focused on trying to set apart the negatives in the industry,” he said. Cryptosis is a kind of a modern disease that originates from the dangerous mix of cryptocurrency in social media. Those who have cryptosis are frantically consuming crypto-related content and usually purchasing vast amounts of cryptocurrency.

The alternative — assuming that any price drop is bound to be followed by a big bounce — is not an appropriate response to FUD. But if your overall philosophy hasn’t changed, there’s no reason to let your feelings usurp it. In other cases, fear of missing out — FOMO — can make drive people to buy investments impulsively. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page.

On Telegram accounts, repeat fud spreaders are booted out. A lot of “know-it-all” people really don’t know it all, and spread a lot of FUD around. This usage of FUD to describe disinformation in the computer hardware industry is said to have led to subsequent popularization of the term. PCMag supports Group Black and its mission to increase greater diversity in media voices and media ownerships.

“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. When someone uses the term FUD, they are most likely criticizing other investors for what they see as uninformed pessimism. 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. Here’s what it means, why it’s used, and how it relates to investing in the world of crypto. Fear, uncertainty and doubt is a propaganda tactic used in sales, marketing, public relations, politics, polling and cults.

NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. Cryptocurrencies and the blockchains they are built on are new technologies. As such, they are still being developed, bugs are being worked out, and real-world use cases are being devised. Sometimes market participants who are betting against crypto’s future will use FUD to stoke fear among investors and encourage selling.

For instance, a big company can discourage customers from selecting products other than its own by disseminating questionable data concerning the alternatives available in the market. 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. In this day and age, the term “FUD” is commonly used by Tesla supporters to describe the so-called “disinformation” that is spread about their company.

In short, market cap is the circulation supply multiplied by the coin’s price. For example, there is currently 345,5 mil SOL out there; the price of Solana is around $38, so the market capitalization of Solana’s token is just over 13 bil. Some of these words and abbreviations are used in finance & investment in general, but most are exclusive to the crypto industry.

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March 19, 2023

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