When price surges happen in the cryptocurrency world, word spreads quickly across the global infosphere, through social media platforms like Reddit, Twitter, and Facebook, creating a tidal wave of people rushing in to buy out of fear of missing out — or ‘FOMO’ in crypto-slang. Consequently, many of those investors become evangelists for their chosen coin, since one’s financial success then becomes dependent on that coin’s continued growth.

With such a system, news of major company developments, partnerships, or events — or simply rumors of such news — can create self-amplifying crypto-crazes that swing coin prices in ways that make both blockchain companies and investors a lot of money. When the news is big enough to capture the attention of mainstream media reporters, freshly published articles become shilling tools for online investors who are eager to spread the word, and in their minds, the wealth. These people, or at least most of them, aren’t trying to be dishonest with their promotions; they have been seduced by the potential of the coin and the promises of its creators. But it’s not only investors spreading the FOMO. Crypto bloggers, YouTubers, and financial advisors who want to take credit for predicting the next hit coin also end up inadvertently contributing to the hysteria. As a result, prices quickly go through the roof, whether or not the coin has the fundamentals or the real-world use cases to live up to the hype.

But when this sort of thing happens in the crypto world, don’t expect it to last long. No matter how sound the coin or the company or the news about it, after a FOMO-driven surge the price will always come down. It’s become a predictable cycle to crypto traders and enthusiasts. As hype grows, and FOMO rapidly spreads, it is eventually met by a wave of fear, uncertainty, and doubt, or ‘FUD’ in crypto-speak. Buzz will inevitably fizzle out due to an advisory campaign that starts out as skepticism, evolves into criticism, and if that doesn’t serve to calm the price down, misinformation and personal attacks that defame the character of a coin or company often enter the game. Let us call this fear-fueled pattern the “FOMO-FUD cycle.” Fear drives the price up in one form and down in another.

It’s collective psychology in action, and the rise and fall of a given coin-hysteria can be traced visually in the charts displayed on market analysis websites and exchanges that plot crypto prices against time.

The FOMO-FUD cycle isn’t just something that happens entirely on its own. While part of it is organic, there’s no denying that some cryptocurrency influencers and investors orchestrate or at least fan the flames of strategic FOMO and FUD initiatives that have been intentionally designed to manipulate cryptocurrency prices. It’s pretty simple to understand why this happens. The FOMO-spreading crowd wants to make more money and the FUD-spreaders are generally those who missed the boat and are hoping their social engineering cyber-tactics can temporarily bring the coin’s price down enough to allow them to buy in at a discount. Of course, not every FUDster is trying to make a quick buck at the expense of other investors — some are voices of reason genuinely trying to advise caution to naïve investors. And some are simply trolls indulging in schadenfreude, who derive pleasure from contributing to the financial misfortune of others.

During this cycle, spreaders of FOMO and FUD are engaged in psychological and information warfare as they compete for the attention of the curious investor, who is intrinsically vulnerable owing to being always on the lookout for insightful opinions that could inform better investment decisions. It’s a bit ironic that in the crypto-world, taking the time to hear the opinions of others can actually hurt more than it helps.

While the FOMO-FUD cycle might be entertaining to watch, it is important to remember that this isn’t a game, even though it’s being played like one. These fear campaigns have real financial consequences for investors and blockchain projects.

What might be most troubling about the FOMO-FUD cycle is that when it has subsided, what remains is an ocean of conflicting information and exaggerations on both ends of the spectrum, making it almost impossible to distinguish fact from fiction.

It seems that we have entered into a “post-truth” world with cryptocurrencies like we’ve recently seen in the world of politics. Such a state of affairs has been damaging to politics and society, and it will also damage the crypto-economy if it is allowed to persist. Additionally, the widespread psychological manipulation of investors through fear campaigns does not help the community grow.

Cryptocurrencies aren’t just a vehicle for increasing one’s wealth. They fund blockchain projects that are creating a technological revolution, which will transform the economy and benefit humanity as a whole. They also educate the public by forcing investors to read technical papers and watch interviews that describe how these innovations will impact the world potentially as much as the Internet and artificial intelligence — possibly more.

If we want to see a transformative technology take off and a crypto-economy flourish, those who participate must resist the urge to join in exclusively on one side of the FOMO-FUD cycle. It is fine for someone to be enthusiastic about their investments and the companies they support — it should even be encouraged — but that can be done while remaining realistic about the serious challenges and uncertainties that any new start-up in a nascent industry will inevitably face.

To ensure the cryptocurrency movement moves along the right path, we who participate in it must teach ourselves to be skeptical not only of sensationalized statements, but also of skeptical statements themselves. We must be aware of how easily we are manipulated when our fear systems are triggered, and adjust our investing behavior accordingly. Those who have the time should actively try to bring clarity to the discussion when they have reliable information or insight.

If the crypto-community can make these efforts collectively, order will emerge from all the chaos, and a body of more reliable and consistent information regarding distributed digital currencies will attract new investors and enthusiasts who are eager to help bring about the impending global blockchain revolution.