FUD refers to Fear, Uncertainty, and Destruction, that arise in the minds of market participants due to a bad political, economic, or industry problem. Sometimes, the last term is replaced by Doubt for less intense scenarios.
Let us look at these terms in more depth.
FEAR
Fear of an event such as the start of a new war or any cybersecurity attack.
For example, the fear that any two large countries which are both crucial crypto markets may get into a war or limited conflict.
Uncertainty
Uncertainty of events like the elections where the winning of each candidate brings out a different scenario in the markets.
For example, the result of an election where the win by one candidate ensures safer markets while the win by another ensures the destruction of this ecosystem.
Destruction
Destruction events such as bans, the arrest of some key figure, or the imposition of crippling regulations.
For example, the imposition of a 30% crypto tax in India or the imposition of taxes on unrealized crypto gains in the Netherlands.
Doubt
Doubt on the survival of something or the emergence of new threats.
For example, a lot of us have a doubt that will Ethereum be able to recover its price and catch on with the largest market rally.
