FUD is an acronym for ‘fear, uncertainty and doubt.’ It’s a common tactic used in the crypto space to manipulate the perception of a particular cryptocurrency or the entire crypto market by spreading misleading information. FUD can lead to a huge dump in the price of the targeted coin or several coins simultaneously.
Common examples of FUD are media suggestions that Bitcoin is in a bubble or works as a ponzi scheme, or rumours that world governments will ban crypto entirely.
How do you counter FUD?
Here are some tips to help you fight FUD whenever it occurs whether you’re an investor or a cryptopreneur.
- Build or Use a Blockchain news verification system
A good way to counter FUD in the crypto market is to build a news verification system using blockchain technology. If existing news outlets are supported by a blockchain verification infrastructure, changes to any information can be tracked. This will drive attention to any changes in the news reported and reveal whether initial reports were false or not. Apart from that, being able to identify the reporter who pushed out false news makes reporters more accountable which will lead to less false reporting.
- Make informed decisions on the news.
Unfortunately, the crypto space is filled with several trends on a daily basis. It is up to us to research the facts and make judgments based on the information. That is if you want to make an informed judgement before buying or selling off your coins. This is an ultimate way to counter FUD in the crypto space.