1. What is FOMO?
· Full Name: Fear Of Missing Out
· Chinese: Fear of Missing Out Syndrome, also known as the fear of missing.
· Core Definition: An anxiety and insecurity arising from the worry of potentially missing out on advantageous opportunities or events that others are experiencing. In the cryptocurrency field, it specifically refers to the intense psychological impulse of 'fearing to miss out on a rising market or a chance to get rich.'
2. When you experience the following thoughts or behaviors, you are likely experiencing FOMO:
1. Chasing the Rally: Seeing a coin that has already risen by 50%, 100%, or even more, thinking to oneself, 'If I don’t buy now, it will be too late!' thus buying recklessly at high prices.
2. Ignoring Risks: Completely neglecting to research the fundamentals of a project (What does it do? Who is the team? How is the token economy?), with the only reason for buying being 'it has been rising' and 'everyone else is buying.'
3. Brainwashed by Narratives: Hearing others talk about 'the next Bitcoin,' 'hundredfold coins,' or 'revolutionary technology,' creates a fear of missing out on an era of opportunity if one does not participate.
4. Community Pressure: Seeing everyone sharing profit screenshots on social media and in WeChat groups, discussing how much they earned, creates a sense of anxiety of 'everyone else is making money, but I am not.'
5. Frequent Operations: Due to the fear of missing out on any opportunity, frequently switching between different popular cryptocurrencies often results in buying when the price drops and selling when the price rises.
3. How Does FOMO Arise?
1. Human Weaknesses: Greed and herd mentality are the roots of FOMO. People are inherently afraid of being isolated and desire to achieve the same benefits and experiences as others.
2. Market Environment:
· Bull Market Effect: In a bull market, asset prices continue to rise, and the profit effect is significant, making it easier to trigger FOMO emotions.
· Get-Rich Stories: Media and communities continuously spread legendary stories like 'a certain coin increased a thousand times in a year' or 'someone turned a few thousand yuan into hundreds of millions,' stimulating everyone's nerves.
3. External Catalysts:
· KOL Recommendations: When influential opinion leaders (KOLs) recommend a certain coin, it triggers collective FOMO among their followers.
· FUD/FOMO Cycle: The market continuously cycles between 'Fear, Uncertainty, and Doubt' (FUD) and FOMO. After FUD causes a price crash, once good news appears, the repressed emotions transform into a stronger FOMO.
