FUD in Crypto Explained
FUD is an acronym and it stands for Fear, Uncertainty and Doubt and is a tactic used by crypto whales, governments, institutions and social media celebrities.
Wikipedia describes FUD as a propaganda tactic used in sales, marketing, public relations, politics, polling and cults. FUD is generally a strategy to influence perception by disseminating negative and dubious or false information and a manifestation of the appeal to fear.
In crypto it’s defined as a way to cause panic selling or shaking out of uneducated retail investors of their crypto coins.
How Does It Affect Crypto Users?
Crypto users can be affected by FUD, for example, when you have a Twitter celebrity come out and say that Bitcoin is dangerous because it’s bad for the environment. These false narratives are designed to create panic in the market place and force new retail investors to panic sell thinking the market is going to crash. They panic sell their crypto only to see that the crash was short lived and the prices rise back up past their selling point causing them to lose money.
Another way crypto users are affected by FUD is when a whale moves his large stash of crypto from a wallet to an exchange. That alone can cause panic selling amongst crypto users because they think the market is going to crash because people are moving their coins to an exchange. This is always a sign that they’re about to dump their coins but this tactic is a fake out. The whales will simulate a dump, the market reacts, the price goes down and causes panic selling then the whale will buy up more crypto at cheaper prices.
Yet another tactic by whales is to actually dump their large stash of crypto. They have enough crypto to move the market so when they dump people panic sell and that causes the price to go down. The whales will then use their gains when they sold to buy more crypto at cheaper prices thus relieving crypto users of their coins (paper hands).
How Does Trustalyze Help FUD?
Trustalyze created the Trustalyze FUD Index Level to stop FUD from moving the market. For too long whales and the likes have used these unregulated tactics to move the market in their favor so they can accumulate more crypto. These whales and institutions don’t care about retail investors. They care about taking as much money as they can from crypto users. Trustalyze aims to stop this by broadcasting the FUD Index Level 48 times a day.
Trustalyze indexes crypto news articles from some of the biggest crypto news websites including some of the worst FUD article writers (Offenders) and lets the Trustalyze community (Crypto users) rate the FUD.
Every 30 minutes the FUD Index Level is updated based on the number of crypto news articles that are rated. As the community rates the articles coming out the FUD Index Level will change.
Trustalyze rewards the crypto community that rates the FUD with the Trustalyze TRSTZ Token. This is a new utility token created on the Cardano Blockchain. You can start earning the TRSTZ Token for free simply by Joining Trustalyze and rating the articles.
Read the article on The Bitcoin FUD Analysis.
