“FOMO, standing for “Fear Of Missing Out,” was initially outlined in 2000 by Dr. Dan Herman in a scholarly article titled “The Journal of Brand Management.” The term FOMO, however, was introduced a few years later by Patrick McGinnis in a 2004 commentary piece in the American publication “The Harbus.”
The term pertains to the sense of unease or the notion that others are partaking in a beneficial or exclusive event while you are left out. This occurrence is notably widespread in social media, where individuals’ posts frequently underscore and accentuate their lives’ favorable and gratifying aspects. This often results in the viewer feeling discontent or insufficient compared to their experiences.
In cryptocurrency markets and transactions, FOMO denotes the apprehension experienced by a trader or investor about missing a potentially profitable investment or trading opportunity. The sensation of FOMO is especially pronounced when a digital asset’s value surges considerably within a short duration. This can influence an individual and the entire market community to make market decisions based on emotions (the fear of missing out) rather than rational thinking. This is particularly hazardous for unregulated retail investors, as it can frequently result in situations where trades are executed for an overvalued asset, thereby exposing them to significantly higher financial risks.
