It is easy to explain FUD. All it takes is a couple of seconds. Because what it stands for will give you a good idea of what it actually means:

By definition, FUD means Fear, Uncertainty, and Doubt.

And it is a common term you will find in many trading groups, Telegram channels, Twitter, subreddits, and blogs.

But its history is even more interesting.

In fact, FUD isn’t a new term. Its origin dates back to 1920s. This Wikipedia article takes an in-depth approach to explain this fear, uncertainty, and doubt.

In short:

FUD started as a marketing technique to influence people. For example, read this to see how IBM used FUD as a tool to generate sales:


Here is another example revealing Microsoft using FUD as a marketing tool:


To recap:

A good FUD drives you — as a customer — away from a certain product and towards another. This is because there is an element of fear, uncertainty, and doubt manufactured in the minds of the customer.

And how does it apply in cryptocurrency?

Let us take a simple example:

Suppose you are holding Verge currencies, and you want Tronix holder to move away from Tronix and buy Verge.

What will you do?


You will create FUD by telling the world how the recent Tronix partnership is fake, and why Verge is the real currency with real product.

You move people away from Tronix by creating fear, uncertainty, and doubt in the minds of the investors.

And towards Verge.

The opposite of FUD is shilling.

Question Is: How Effective Are These FUDs?


Think about IOTA.

Recently, IOTA was a victim of a recent FUD, in which the cryptocurrency was declared to have a security vulnerability by leading experts.

IOTA price went crashing down.

That’s the goal of FUD — to push the market down.

Almost every currency has been a victim of FUD.

NEO for its poor performance. Vechain for its fake partnership. Ripple for its tie-ups with various banks. These FUDs are endless.


But FUDs Can Be A Savior

Because they can be a clue — a hint of what to expect. Some FUDs may be true — as they can help you get out of the cryptocurrency and save you money.

And some can be a trap.

It is incredibly tricky when you think about it. Because, as we are all online, it isn’t easy to know whether a particular news is a FUD, or actually true.

This is where DYOR (Do Your Own Research) plays a vital role.

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