FUDster is a term used to describe investors and traders who spread rumors or false information in order to manipulate the price of certain cryptocurrencies. FUD stands for “fear, uncertainty, and doubt”, which are the emotions that these individuals attempt to create in order to induce panic selling from other investors.
The goal of FUDsters is usually either short-term profit or long-term damage to a particular cryptocurrency’s reputation by driving away new potential buyers and users who may have been interested in it. This type of market manipulation has become increasingly common as the cryptocurrency industry has grown more popular over recent years.
In many cases, these malicious actors will attempt to disguise their activities by creating fake social media accounts with an assumed name and using them to spread negative news about specific coins on popular forums such as Reddit or Twitter. They may also target individual exchanges where they can dump large amounts of a certain coin at once, hoping that others will follow suit due to fear caused by the sudden drop in price.
It’s important for all investors and traders involved with cryptocurrencies to be aware of this type of behavior so they can avoid being taken advantage of by unscrupulous actors seeking personal gain at the expense of others’ hard-earned money. To protect yourself against FUDsters:
1) Take time when researching any potential investments; base your decisions off reliable sources such as credible news outlets instead relying solely on rumor mills like Reddit threads or Twitter feeds
2) Be mindful when trading; watch out for sudden drops in prices which could be caused artificially via market manipulation
3) Monitor your portfolio regularly; pay close attention if you notice consistent losses during risky periods within volatile markets
4) Stay informed about current events related to cryptocurrencies; keep up with breaking news stories regarding regulations changes, government actions, etc., as well as any announcements made by project developers about their products/services
