FUD is a concept consisting of the initials of the words “Fear, Uncertainty, and Doubt” and is often used as the name given to published false or misleading information that allegedly devalues or inhibits the use of a product, service, or technology. It is a strategy followed to spread the negative news of a company or product. This tactic aims to gain an advantage over competitors and lead potential customers to an audience that has a negative opinion of the company or product. This tactic aims to create interaction and distrust and, thanks to this negative effect, aims to gain superiority over the products of competitors in the market.
FUD spread is often done illegally and is often anonymous. This can negatively affect the replication of companies and products, the purchasing decisions of potential customers, and the continuation of existing customers to use the company-product.
FUD spread often continues by spreading untrue or exaggerated news against competitors’ products. For example, if a negative news about the safety of a company’s product spreads, potential customers may not consider buying that product, and the issue may continue until the return of the product and service of the customer who purchased the product. Likewise, if negative news about a company’s financial condition spreads, potential customers may not even think about buying that company’s products. For this reason, companies often aim to protect against the spread of FUD and try not to be exposed to this tactic.
In conclusion, FUD is a strategy aimed at spreading negative news about a company or product and is implemented by targeting potential customers to form a negative opinion of the company or product.
If we give an example of FUD publications in the crypto money market;
- Discourses such as that the new projects to be launched are rug pull, that the team does not give enough confidence, that the project is not good enough,
- For example; While waiting for the 1500s after $ 1100 in Ethereum , a mass of investors who want to buy lower in the market in general spread a rumor that ETH will fall to $ 900, allowing users who take the FUD discourse into consideration to sell.
- The spread of discourses that the market will move down and fall during periods when the market is in limbo are the main examples.
What can you do to protect the crypto money market from FUDs?
Learn from accurate and reliable sources: Much of the false or misleading information that leads to the spread of cryptocurrency FUD is often shared from untrusted sources. Therefore, take care to obtain information from accurate and reliable sources.
- Emotionally driven decisions: Instead of making emotional decisions, think rationally and do research when investing.
- Diversify your portfolio: Diversify your portfolio and distribute risk. This will reduce the likelihood that your investment in a single cryptocurrency will be affected.
- Don’t panic sell: When FUD is created, instead of panic selling, think about it and investigate its causes. If the value of your investment is really going to drop, you can wait instead of selling and sell at a more convenient time.
- Keep track of the market: By following the market, you can follow the cryptocurrencies that are under the influence of FUD and get a better idea.
- Use reliable tools: Using reliable tools, you can track the values of cryptocurrencies and detect units under the influence of FUD.