Short for fear, uncertainty, and doubt, FUD is a sentiment that belies high uncertainty during a bearish mood in the crypto market.
The acronym also denotes a strategy employed by skeptics within the crypto community to spread disinformation or negative news to turn investors away from certain digital assets or the market in general. Such people are also called FUDsters by crypto enthusiasts and pro-crypto investors.
Popularly used by crypto traders on social networks such as Reddit, Twitter, and Telegram, FUD refers to negative news that can bring down the market's sentiment and drive a sell-off. However, a FUD event typically has only a short-term downside and markets bounce back quickly from such incidents.