Have you heard of FOMO? In the crypto world, this is a high-frequency term.

FOMO = Fear of Missing Out, in Chinese it is called "害怕错过". How to understand this specifically? It means seeing someone else's coin rise, and feeling anxious for not having bought it, fearing it will continue to soar later, and then rushing in to buy. This mentality spreads particularly easily in the crypto world.

Why is FOMO so intense? Because information in the crypto market spreads quickly. When a coin suddenly skyrockets, social media is filled with screenshots and bragging. Newbies see the opportunity and FOMO kicks in, resulting in collective buying, and the coin price continues to rise. This creates a positive feedback loop.

The rise of meme coins like Shiba Inu and Dogecoin is driven by FOMO emotions. The early surges of many projects are also inseparable from this trend.

But the opposite is also true: when social media starts urging people to sell off, FOMO can drive collective selling. At this point, the emotions reverse, resulting in a crash.

The core logic is simple - FOMO is a double-edged sword in the crypto world, capable of driving prices up as well as accelerating declines. Newbies are the most vulnerable.