FUD is an acronym for Fear, Uncertainty, and Doubt. It’s a strategy often used in sales, marketing, public relations, politics, and propaganda. The term was originally coined by Gene Amdahl after he left IBM to found his own company, referring to the fear, uncertainty, and doubt that IBM would instill in its customers in order to keep them from switching to a competitor’s products.
FUD is also frequently used in the field of cryptocurrencies and investing. In this context, FUD can refer to any negative information, true or not, that’s disseminated with the purpose of driving down prices or causing people to sell their holdings. It can sometimes be used as a manipulative tactic to decrease the price of an asset for personal or competitive gain.
As such, “spreading FUD” is often frowned upon because it’s seen as promoting an irrational response rather than reasoned decision-making.