Speculating on memes and stocks is a constant switch between FOMO and FUD, and the confrontation between these emotions often leads to violent market fluctuations.
FOMO (Fear of Missing Out): FOMO refers to the fear of missing out on an opportunity, so when investors see others participating in an investment or transaction, they feel pressured to participate as soon as possible to avoid missing out on possible gains. When speculating on memes, FOMO emotions may cause investors to follow suit and drive prices up.
FUD (Fear, Uncertainty and Doubt): FUD refers to the emotions of panic, uncertainty or doubt in investors about the market or a specific asset. When speculating on memes, some investors may use FUD emotions to spread negative information or doubts in an attempt to influence market sentiment and cause prices to fall. They may spread negative news, rumors or concerns about an asset to encourage other investors to sell.