The fear of missing out (FOMO) is a well-documented part of life by psychologists. This is the feeling of apprehension or worries about not being a part of something significant.
In cryptocurrencies, the term has found ubiquity amongst traders; acting as a force behind the investment decisions of many market investors.
The fear of missing out is akin to “following the herd”; to investing in a particular project without conducting due diligence. It’s often difficult to ignore the buzz from trending projects about the latest coin that is “about to x1000”.
However, willpower and research would help prevent investors from falling into scams, pump-and-dump schemes, and rug pulls with unscrupulous founders.
Crypto FOMO
Crypto FOMO has always plagued traders, and the concept has reached frenetic levels in cryptocurrencies.
In November, Bitcoin reached an all-time high of nearly $65,000. While other cryptocurrencies rode the bullish waves to post new record highs.
For investors watching from the sidelines, it’s easy to feel left out of the party. Several investors made the brash decision to buy assets at the top; then a few months down the line, they are writhing in regret.
A keen example of crypto FOMO is the infamous Squid Game project that rose by over 1,000% in hours; baiting thousands of investors to sink funds to be part of the mania.
The project lost a chunk of its value in what the BBC described as a rug pull, with creators running away with $3.8 million.
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