FOMO- The Good, the Bad, and the Meaning
FOMO. A word that is heard consistently throughout investment sectors. But, what does it mean?
FOMO is short for Fear of Missing Out. Have you ever watched as a single project receives the limelight wherever you look? Often, when a project is doing well in the charts, it suddenly becomes visible because of all the hype that is created. Social media begins to buzz because the current investors in the project tend to share the opportunity. This sudden popularity of the project leverages the opportunity for both current and new investors. When the chart is "pumping" (a term used when the chart is moving in a green or upward trend) because of the popularity and newfound visibility, new investors see the chart and may choose to invest at that time causing a frenzy of new investors chasing big gains.
When seeing that a project is pumping, an investor should refrain from jumping in immediately and should complete research to ensure the legitimacy of the project. By you may be able to spot if the project is a rugpull or a potential honeypot. Being caught in either a rugpull or a honeypot scam during a time of a large pump can be devastating for even the most seasoned investor regardless of the amount that they have attempted to invest into the project.
If you are able to check a project's legitimacy and have the opportunity to purchase during a time the project is experiencing a pump due to FOMO, it is a great opportunity to join as your investment could grow quickly, giving you the opportunity to sell your gains.
FOMO within a project can be both good and bad, depending on when the FOMO sets in, when you are able to purchase, and if the project is legitimate. Verify Lens aims to help assist with the transparency of projects and can help assist you with doing DYOR more quickly and efficiently to give you an upper hand to invest in projects in the peak FOMO opportunities.
