FUD (Fear Uncertainty Doubt) comes with every crypto coin no matter how perfect, decentralized, scalable, etc…
So here’s the major FUD for each of the top 10 cryptos for those who are new to the space or want to know more about why some have their doubts about these projects. Some of this FUD may not be “true” depending on how you view it but it nonetheless forms a major opinion on why there is FUD surrounding the project. In my opinion, it’s important to be aware of it so you can form your own opinion for your investments and help spur discussion.
Although the pioneer of blockchain technology, it is considered slow, expensive, and unscalable compared to many emerging coins over the past 10 years (LTC, BCH, XLM, NANO, etc..) It’s also much easier for you (depending on the country you live in) to send money to a friend or spend your currency at a store with credit cards or apps like Venmo/PayPal. At this point, many question why use bitcoin when they can just use their own currency reflecting how many don’t perceive or care about the importance of decentralization.
Another major piece of FUD is which country controls most of the bitcoin as it seems China and USA have a dominant control over mining operations which makes many believe that there is nothing stopping one country from attacking the network. Bitcoin also has some other FUD like how it’s not a physical asset like gold, whales manipulating the price, what happens if I lose my keys, etc… but many of those arguments can be applied to other crypto and blockchain technology so I won’t focus on them here. Forgot to mention, but also energy costs related to mining.
It’s no surprise that the major FUD against Ethereum is scalability. There are many platforms on the rise trying to take the spotlight from Ethereum and become a highly scalable and decentralized platform that provides cheap and fast fees for using its applications. Many believe the rise of ADA, DOT, and BNB are mainly because of Ethereum’s scaling issues. There is alot riding on ethereum 2 to solve its scaling issues but still seems to be at least a year out before it transitions.
Ethereum also has some FUD surrounding its distribution of coins and concerns of whales holding much of the supply but it seems to not have much of the focus right now.
The main argument against BNB is that its primarily centralized and doesn’t have value other than being used to reduce fees when trading on Binance. With one company controlling the tokenomics and its future, it goes against what many believe to be the core tenet of blockchain which is decentralization.
Although it’s a stablecoin, Tether has possibly the biggest FUD even when compared to bitcoin because of its lack of auditing and what many believe to be “fake” money propping up the price of bitcoin. If tether is ever found out to be artificially pumping Bitcoin with fake reserves, it would make the value of Bitcoin artificial and cause a large crash.
The rise of DOT so fast into the top 10 this year has made many question its value. DOT had a large token sale in the past couple of years before it’s release on exchanges which helped drive its price but makes some fearful of how much early investors control the supply before retail could buy in. Seen as a competitor to Ethereum, DOT is attempting an ecosystem of applications but has yet to prove itself when compared to the number of developers and transactions on Ethereum.
There are also concerns regarding DOT’s allocation of funding to developers in that there is a large amount of funding being aggressively driven to developers to create apps. There is also some FUD regarding its creator and a fictional story involving a minor he made in the past but I’ll let you google that.
Another competitor to Ethereum is ADA which some believe to be a “ghostchain”. With a long roadmap ahead and many items to deliver, Cardano doesn’t have near the amount of transactions or applications compared to Ethereum but promises to be the 3rd generation of crypto platforms ahead of Ethereum. There are also concerns over how much the network is decentralized but that doesn’t seem to be the main focus of FUD right now. Much like DOT, ADA is a wait and see.
Many consider XRP to be what blockchain shouldn’t be about and that is working with banks and other payment providers to facilitate transactions. With its focus on becoming the choice of crypto for banks and an all in one payment solution, many see it as a zero sum game considering bitcoin’s value is about P2P transactions and being decentralized and free of the third party involvement. Ripple has also come under fire recently after being sued by the SEC for misallocation of funding relating to not registering as a securities offering.
Seen as a clone of bitcoin with some minor changes to make it faster and cheaper, LTC’s value seems to only be derived from bitcoin’s value although that makes many question why they should invest in LTC when BTC exists. LTC’s value also competes with other coins that are considered faster, cheaper, and more scalable. There is active development but some think it’s small compared to other projects and some consider that the creater of the project, Charlie Lee, abandoned the project after selling his coins in 2017.
Seen as an important piece of the Ethereum ecosystem to connect applications and data because of oracles, the major FUD against the project seems to be control of its supply by whales. Many may also not understand why Chainlink needs a token and its inherent value, as oracles can be a confusing topic if you’re not already a crypto developer.
This project has caused a lot of controversy as it was hard forked from bitcoin in 2017. It has attempted to solve bitcoin’s scaling problem and become faster and cheaper but many believe it was done as a cash grab by the BCH developers to have a similar name to bitcoin and ride the hype of bitcoin. It also caused some other hard forks to occur like Bitcoin SV and Bitcoin Gold to cause even more confusion.