Fear, Uncertainty, and Doubt

Fear, uncertainty, and doubt (FUD) represents a disinformation strategy used in a variety of fields to foster doubt in a specific thing.

In finance, this most commonly is used in the crypto space, which erodes confidence in cryptocurrencies. However, any asset theoretically can be the target of FUD.

At its core, FUD can describe any strategy used in sales, marketing, public relations, or even politics.

The primary aim is to sow doubt through fake information and appeal to people’s fears of a specific thing.

The term was first defined by Gene Amdahl, an American computer architect who used the term after he left IBM to start his own company: "FUD is the fear, uncertainty, and doubt that IBM salespeople instill in the minds of potential customers who might be considering Amdahl products."

FUD Creating Disinformation Surrounding Cryptocurrencies

Today, FUD can reflect anything that is intended to create a negative culture around Bitcoin or another cryptocurrency, and to encourage people to use government-issued currency instead.

While the industry continues to mature, there are no shortage of pessimists who look to undermine cryptos and their movement to mainstream investing.

FUD has also been used as a technique by some cryptocurrency communities to dissuade users from a certain cryptocurrency and to use their cryptocurrency instead.

As such, spreading FUD can be a market manipulation tactic and highly effective given the powerful mediums of communication.

With the proliferation of social media, it’s possible for fake news to spread globally within minutes, casting doubt on specific investment instruments.

FUD is extremely hard to prevent, like most fake news, and staying informed of investment instruments or assets is the best defense against such disinformation.