It is a little surprising that supporters of new altcoins and ICO tokens make use of every tool at their disposal to attain the trump card in the cryptocurrency market. Sponsorship deals with rapper, sports stars and other celebrities are well-known and widely talked about positive marketing approaches. But the negative side of the business is no less important. This involves defaming of the campaigns to weaken the competitors and unfavorably affect the psychology of the investors.
Trading Psychology
Fake news, FUD and FOMO are some terms that are often thrown around in cryptocurrency forums. But some individuals have certainly successfully modified these tactics. Bobby Azarian, Ph.D., a cognitive neuroscientist who has written in Psychology Today, explained how the natural cycle of distress and greed has been seized to encourage specific interests.
According to Bobby Azarian, during this cycle, FOMO and FUD spreaders are busy in psychological and information warfare as they are struggling for the attention of the inquisitive investor, who is naturally vulnerable because of they are always on the lookout for wise opinions that could let you know better investment decisions. In the crypto-world, giving time to hear other's opinions can literally hurt more than it helps.
No-Holds-Barred High Stakes Game
More than half a trillion dollars and a daily trading volume which is higher than some national stock exchanges is the total market capitalization, and that’s the reason cryptocurrency promoters are playing in the big leagues.
Furthermore, as the market is not controlled by the regulations or laws and ethical standards are still to be acknowledged, tactics that would get you disqualified or in jail in any other market are seen as a fair game. Taking this into consideration, investors need to remember that not only haters, contrarians, and trolls might be passing on gossip and false information, but also business people who have lots of money to spend on PR and big commercial interests at risk.
Apart from fighting against same investors and resources, cryptocurrency promoters may have many other objectives to hurt a contender. Occupying its place on Coinmarketcap, one simple purpose is they want to make sure that no other token passes yours by total value. The more complicated situation to follow is the interlinked community politics, while someone can attack a project not because it is a direct rival, but instead, the supporter of it is a competitor in another field.
Triggering Our Fear Systems
Azarian explained how the cycle unfolded across the internet (in full detail), Reuters, and CNBC. The reason why this article seems to be well-investigated on the surface gave FUD spreaders the ultimate weapon to add to their arsenal. Psychology experts say that cryptocurrency traders should be doubtful not only of buzzworthy statements but also of doubtful statements themselves. In case you have questions in mind regarding the crypto world, do check out cryptoupdates.net. Learning about these coins lowers risk and gives you a better understanding of the market.
