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FUD Definition & Meaning

FUD Definition & Meaning

Andrew Chen
Fact Checked
Jul 4, 2022

Summary: In this guide, we explain to investors what the acronym FUD stands for, where it originated and how to use it today. The term FUD gained popularity in 2020 when the crypto market began to attract retail investors attention.

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What does FUD mean?

Crypto can be a very volatile market, and FUD or Fear, Uncertainty, and Doubt is often cited as one of the key reasons for this. FUD refers to negative or scaremongering information that is spread in order to make people sell their assets. In the case of crypto, this could be rumours that might make people think twice about investing in digital currencies.

It's a strategy that some projects use to discredit their competition. The goal is to make people question using a competitor's product or service by spreading rumours or creating false information. FUD can also be used as a tactic by investors to drive down prices so they can buy more cheaply.

By deliberately creating a sense of fear, uncertainty and doubt, they hope to trigger a panic sell-off which will allow them to scoop up assets at a lower price. Remember, not all FUD is created equal – some of it may be well-founded, but much of it will simply be people trying to take advantage of the situation.

Wikipedia Definition of FUD
Wikipedia Definition of FUD.

How to use FUD in a sentence

Here are some examples of how to use FUD in a sentence:

  1. The company has been accused of using FUD to try to make people think that its competitors' products are inferior.
  2. I've been hearing a lot of FUD about the new product launch – I'm not sure if I should believe it or not.
  3. There's so much FUD surrounding this issue, I can't even think straight!

Where did the term 'FUD' originate?

The term originated in the business world, but it's often used in other contexts as well. For example, you might see it used in marketing, politics or even in personal relationships. It has been referenced in different forms since the early 1900's but was first officially stated in 1975 by a PR company as a tactic to beat its competitors.

Andrew Chen

Former Bitcoin Maximalist turned multi-chain enjoyer. I hunt down the best yields across AVAX, Solana, Fantom and other networks.

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