FUD is the creation of doubt in the minds of market participants and incitement of panic by spreading negative or misleading information. A common form of FUD is the creation of rumors, such as an impending government crackdown on cryptoassets, news of fictional exchange hacks, and exaggerated reports of project failures.

For example, Jamie Dimon, CEO of JPMorgan Chase, called Bitcoin a “scam” [ 2 ], which triggered a panic in the market even though his company has since ventured into blockchain technology. While not necessarily a direct act of market manipulation, such public comments can lead to panic selling and price volatility.