In late December of 2021, we saw FUD at an all-time high for Bitcoin particularly. This was a result of cryptocurrency mining being banned in several countries, including but not limited to China, Egypt, Morocco, and Tunisia.
There are other situations where FUD might apply. FUD is often mentioned within the NFT space. It's usually when the community is discussing a project or developer (dev).
These developers present a project that seems reliable, but then only after getting money from people, they seem to step back from the project with the profits and we see the project's activity slow down.
Sometimes we see these developers take the money and shut it down completely, which is also referred to as a ‘rug’. Unfortunately, this happens more often than one would like to see, a few notable ‘rug pulls’ we saw in 2021 were Iron Finance, Snowdog, and Fiat.
FUD is similar to another acronym many are familiar with, FOMO, which means fear of missing out. Much like FOMO, FUD only affects you if you allow your emotions to dictate your decisions and behaviors.