Crypto craze: FOMO rising, fear of messing up prevails

Bitcoin has now surpassed the market value of all but the six largest US-listed companies. Meanwhile, Dogecoin—created as a parody—is expected to rank among the top 200 stocks by market capitalisation.

Expectations of crypto enthusiasts were reignited by the recent US election and Donald Trump’s imminent entry into the White House. They hope a regulatory shift could propel the sector to unprecedented heights. Many anticipate President-elect Trump will fulfil promises to replace SEC Chair Gary Gensler, roll back restrictive policies, ease cryptocurrency regulations, and even establish a federal bitcoin reserve.

Looser regulations could, in theory, boost cryptocurrency prices by attracting more buyers. Cryptos rely solely on supply and demand dynamics, lacking underlying economic or income-based support. However, while greater demand might raise prices, bitcoin may not gain as much as some expect.

Bitcoin has reached a record all-time high of over $90,000. This rally has ignited discussions about whether Donald Trump’s pro-crypto stance could mark a defining moment for digital assets. His return to leadership with a supportive approach has stirred excitement among crypto enthusiasts, fueling hopes for a friendlier regulatory climate that could accelerate industry innovation.

Significance of Trump's victory

A pro-crypto administration under Trump could help create a more favourable global environment for digital assets. Given the USA's significant influence over global regulatory frameworks, a supportive stance from the US might prompt other countries including India to adopt a more balanced approach, potentially easing local restrictions. With key developments, such as the approval of Bitcoin ETFs and the Bitcoin halving, already driving trading interest, any shift in US policy could further amplify this momentum.

While US elections and political shifts may influence the future of crypto assets, the true value of digital assets lies in their fundamentals. Long-term investors focus on the resilience and unique characteristics of assets like Bitcoin, rather than temporary market cycles. Here, marketers and crypto companies have to play a vital role in guiding investors toward a deeper understanding of these fundamentals.

The India story: Perception of crypto assets

A rising middle class and growing financial literacy are driving a shift toward wealth-building through diversified investments, with heightened interest from investors in tier-2 and tier-3 cities. India boasts over 16 crore investors, including more than 50 lakh active traders in equities and other asset classes. However, many remain hesitant to consider crypto due to a lack of understanding of this emerging asset class.

These apprehensions are often driven more by a lack of knowledge than by actual risks. Market research reveals a powerful, yet often unaddressed, consumer insight: while the stories of those who have profited from crypto create a sense of FOMO (fear of missing out), many still hold back due to 'fear of messing up' (FOMU). As a result, they remain on the sidelines.

The FTX collapse and similar crises have impacted consumer trust. Past campaigns were largely driven by FOMO, overlooking the importance of education and risk awareness.

Building trust

Over time, marketers realised that to rebuild trust and long-term confidence, crypto marketers must prioritise education and empowerment, offering clear, transparent information about both, risks and rewards. This shift presents a unique opportunity for brands to lead with credibility, reshape public perception, and ensure a sustainable future for the industry.

Providing accessible, step-by-step learning resources is key to demystifying crypto and equipping individuals with the knowledge they need to navigate it responsibly. From understanding the basics to mastering advanced strategies, investors need the tools and insights to make informed decisions.

By prioritising education, the crypto industry can transform hesitation into confidence, ensuring that every Indian—regardless of background or location—has the opportunity to engage with this asset class with clarity, assurance, and a long-term perspective. This approach not only benefits individual investors but also strengthens the foundation of a resilient and inclusive crypto ecosystem in India.

Educating investors on what makes crypto a valuable long-term asset—such as its decentralisation, scarcity, and increasing institutional acceptance—increases their confidence to consider crypto in their financial planning. By emphasising these core strengths, marketers can help investors make more strategic, informed decisions rather than chasing fleeting hype or speculation.

- Prashant Verma, chief growth and marketing officer, CoinDCX.