Consolidated market capitalization, according to the data of 7.01.2018, exceeded the $ 800 billion mark. As the crypto market, today is almost not regulated and ethical standards are not established. A certain atmosphere of permissiveness and impunity prevails on the market. The FOMO-FUD cycle has become a weapon for the crypto market. First, let's see what is hidden under these terms.
"Fear Uncertainty, Doubt" is an acronym from English "Fear, Uncertainty and Doubt".
This is a deliberately created situation when rumors or unconfirmed news about a particular cryptocurrency influence its exchange rate, which is obviously beneficial only to a narrow segment of the audience. We can say that fud is a tactical information impact, aimed at stimulation of panic, doom. Which in turn leads to massive sell-off, or as it is commonly referred to as - the disposal of assets.
The very concept, the abbreviation of which is used, is borrowed from psychology "Fear of missing opportunity". As a rule, newcomers face this phenomenon. Here is how it works:
How does this affect the psychology of purchase?
At a time when the exchange rate and the agiotage are growing, your subconscious paints you bright prospects, in the case of a constant increase, which makes your brain take a decision based not on logic and analysis, but on a sense of fear caused by a loss of profit.
This is a very common problem for newcomers, and most people lose money by making a decision at the wrong time.
It follows from that the cycle is a series of deliberate actions aimed at forming the necessary opinion of the audience. Simply said, - this is a psychological manipulation, by means of working with information fields, in order to create the necessary dynamics.
Bobby Azaryan, Doctor of Philosophy and Cognitive Neurobiology, explains how a natural cycle of fear and greed is used to promote specific interests.
"During this cycle, FOMO and FUD distributors are engaged in a psychological and information war as they compete for the attention of a curious investor who is inherently vulnerable because he is always in search of deep opinions that could contribute to the best decision to invest funds. It's a bit ironic that in the crypto world, the opinions of others can do more harm than help. "
In addition to competition for investors and their resources, the Cryptocurrency promoters may have more reasons to harm the rival. One simple motive is the desire to make sure that no other token will exceed their own token at the cost, getting a higher place on Coinmarketcap.
A more complex situation is the intertwined community policy in which someone can attack a project not because it is a direct competitor, but because the supporter of this project is a rival in another field.
Here is an excerpt from Azaryan's article on Psychology Today:
"Although the FOMO-FUD cycle can be interesting for observation, it is important to remember that this is not a game. Conducted campaigns have real financial implications for investors.
The expert in psychology came to the conclusion that crypto-currency traders should skeptically treat not only sensational statements but also skeptical statements as well.”