Get to Know What FUD Is in the Crypto World
Rancakmedia.com – Have you ever heard someone say the phrase FUD or seen the three letters FUD in the bitcoin world? Let's get to know what FUD is and how it can affect the crypto market. Fear, Uncertainty and Doubt are short for FUD.
If we speak Indonesian one by one it means Fear, Uncertainty, Doubt. Then, if translated into everyday language, it is the spread of news whose truth is still doubtful and ambiguous, causing fear for the common people about the movement of cryptocurrency.
The goal is for the market price to fall substantially. Why did the market price drop sharply? I'll try to give a simple example: A few days after hearing about FUD in the media, I obtained 100 units of a certain type of crypto coin for IDR 1,000 each.
Within a few days, the price had fallen to Rp 750 per unit. I, who at that time did not know and had not fully researched cryptocurrencies, got nervous and was afraid that the price would fall even more and I would lose even more.
In the end, I sold all units for Rp. 730/unit because at that time the price had reached that price. No need to wonder why the market price could drop if a thousand people do the same as me.
When the FUD spread is effective, the price of the coin in the market crypto will drop substantially, and this opportunity will be exploited by FUD spreaders to buy coins on a large scale at low prices.
Decline in Market Prices Caused by FUD Spreaders
Like the definition of FUD which leads to things that are not good, of course the news that is spread will also be negative. I'll try to use an example, what happened recently was the spread of difficulties related to hacking operations on Binance.
Like bitcoin VIP, Binance is a cryptocurrency marketplace where users can buy and sell other cryptocurrencies. So it was claimed that the Binance marketplace was hacked and one Reddit user commented, “My balance is reduced by 25 percent, now I have VIA and a total of 3 of my coins were sold.
Some of the media that broadcast this news, of course, will make people who don't study fundamental analysis in crypto trading worry and panic, which in the end will make the market price go down, especially when coupled with Altcoin prices that depend on Bitcoin, it will automatically have a big effect on price fluctuations. market.
A few hours after that binance published news about aberrant trading activity, leading to the activation of the risk management system, which caused all withdrawals to be blocked. Binance also confirmed that the money was not taken and it is safe.
If we study this scenario, it means that market service providers must already have a strong security system against hacker attacks, because this market is one of the world's markets.
Borrowing a word from Oscar Darmawan, that under the Blockchain system if we want to break into a website under the auspices of Blockchain, the individual must break into at least half of the server. This means that it is not easy for hackers to exploit a system.