FUD is a common term in the crypto jargon that indicates an anxious feeling created in the market following fake crypto news posted on social media or sites. It is a manipulation through disinformation.
FUD stands for Fear, Uncertainty, and Doubt, a feeling of general concern used to describe the spread of harmful or misleading information about a particular cryptocurrency or the entire market.
This term comes from marketing but was adopted in the crypto industry because cryptocurrencies are pretty volatile assets and particularly vulnerable to FUD sentiments.
The common purpose of FUD can be
to cause a decline in market sentiment leading to dizzying price corrections down
to cause general skepticism about a particular crypto asset spreading fake news on that asset/topic.
Significant FUD examples were
China has banned bitcoin mining (2021)
Updates concerning the regulatory frameworks around cryptocurrencies for each country
Bitcoin pollutes the environment
Influential crypto tweets
Uncertainty about corporate crypto assets
Overall, FUD can affect the market value of a coin, a token, a company, or a project, even including the entire crypto market.
It has been seen as the opposite acronym of FOMO (Fear Of Missing Out). When markets rise, individuals may give into feelings of FOMO; when markets are cooling, FUD can spread more quickly.