While it is often difficult to pinpoint the origin of such a FUD, certain patterns tend to emerge that can give us some clues as to where it might have come from.
With the rise and boom of social media, crypto FUD is not hard to spot on mainstream channels like Twitter and Telegram, and its immediacy allows rumors to spread quickly and widely. Therefore, users should be wary of speech on social media and exercise good judgment.
In some cases, FUD may also be spread by members of the media, who may not fully understand the technology behind a particular coin and therefore report it negatively.
Regardless of the source, it is important to understand the potential impact of FUD on the market and try to avoid making investment decisions based on fear or uncertainty.
FUDers spread rumors and misinformation for a variety of reasons. Most of them are for their own vested interests.
One of the most common motivations is to create short-term price swings that they can take advantage of. This can be done in several ways.
For example, a FUDer might spread rumors about a particular coin that caused the price to drop. The FUDer can then buy the token at a lower price when the price starts to recover before selling it. This practice is often referred to as “pumping” and is illegal in many traditional markets.
Rumors have become more prevalent on social media in recent years. In order to increase fans, some people spread rumors, create confusion, gain more attention, and then serve their own vested interests.