The craziest organic price jerks you’ve ever known in the crypto space were probably driven by ambitious investors jumping into new ‘exciting’ projects with hopes of making some gains or at least not missing out from the potential success of the project. ‘Fear of missing out’, guess you’ve felt this heat up your sleeves for at least once. ‘Once’ is unarguably an understatement…yeah, for real.
The crypto space is a very dynamic environment, a complicated market and home to varieties. Smart, decent and gullible; a simple list of the sort of personalities in the crypto space. Controversial enough, anyone can be found in any of these categories in certain situations. Investors’ reaction is a major force in the crypto market, just like most other markets.
An investor’s principal goal is to make profits. This entails buying at lower prices and selling at higher prices. Sometimes, this might mean ‘joining the moving train’ for some investors.
Crypto investors are attentive for ‘the next rave.’ Spotting such projects isn’t always as easy as it sounds. A sudden ‘big’ news triggers an investor’s nerves. If already invested, an investor might move to increase their stake in the ‘booming’ projec,t hoping it really becomes the new rave. For investors who own no stake in the project, the ‘fear of missing out’ comes into play.
‘Stack up before it goes to the moon’! Everyone loves to be part of the ‘Lambo talks’, trying to avoid the regrets of missing out in the ‘next 10X’ pushes an investor into a rather impulsive investment in a promising project.
Fear of missing out (FOMO) could spread across sectors; depending on how significant the project’s speculated success (price movement) could be, investors from outside the space could be lured into impulsively buying into the project. A ‘fear’ gripped investor dives in without checking the depth of the ocean.
We’ve seen this phenomenon play out in full force many times, the 2017 bull run was a clear show of how internal and external ‘fear of missing out’ could spur price movements. Excited about the potentials of blockchain technology and cryptocurrency; existing and new blockchain and cryptocurrency believers who wanted a share in the future moved to invest in full force.
2017 FOMO was so much that anything called ‘cryptocurrency’ and running on a blockchain was bought up. The market was booming…a significant time in history. The rave took over the world, virtually every ‘woke’ investor attempted to know more about cryptocurrency and blockchain; a good percentage became eventual investors. Most cryptocurrencies still have their All-time high (ATH) stuck between 2017–2018.
Fast forward to about two years later; notable cryptocurrencies are attaining new highs, bitcoin and ethereum have made the most gains. It looks like 2017 again, but wait…the current price jerks don’t look like another result of ‘Fear of Missing Out’ (FOMO). According to a Twitter user:
Unfortunately, this space is a wild one and the internet has a very short-term memory. The rush, the thrills…you probably jumped into a couple of moon tokens and memeCoins after they had some insane runs and are popping up on your timeline.
“Shiba Inu to $1 will make you a millionaire!”. Delusional coins; with trillions of tokens in circulation and price so low that only a few dollars could get you millions of tokens. Investors rush to buy with hopes of making millions when the price hits $1 or a bit closer. Well, it worked for a good number of investors. Turning $8,000 into $5.7 billion is a story that should make a Disney movie.
Stories like this are compelling, investors are moved to discover ‘the next Shiba Inu; 1000x coins…the imaginations continue.
Making a fuss out of an expected partnership announcement is a crypto culture. This space houses the best hype marketers…and the most gullible investors. The rush and the crash sound different but related. And if you ask if FOMO is still a thing in crypto, the answer is a loud Yes!
A normal human character, in my opinion. It is human to accept a facade if the narrator sounds convincingly sincere and confident. Bitcoin to $500K EOY? Well, we are a few weeks to the end of the year, and it might be too early to write it off, but this prediction and indicators supporting it were popular sometimes in the first quarter of the year. Even if we don’t hit this target, it surely created a rush; just like every other ridiculous prediction.
Is the fear of missing out done, or are we set for another leg up?