What is FOMO?
FOMO stands for “fear of missing out”, which is a powerful emotional trigger which can cause buyers to act emotionally and often overpay on the marketplace.
The concept of FOMO was identified by marketing strategist Dr. Dan Herman in 1996, and is a major driver in the crypto and NFT space where people don’t want to miss out on the latest token or project that has the chance to skyrocket.
FOMO is a big driver in the VeVe app because edition sizes for collectibles are purposely small, with many fewer editions than there are users. This improves the collectibility of items, but also means that not everyone that wants an item can have one, leading to FOMO in the marketplace as users compete for limited quantities of NFTs.
FOMO is most apparent shortly after a drop.
Because most users won’t win a drop, they have to purchase the item on the secondary market. Often, in the first few minutes after a drop, items can go for sky high prices because people who missed out on it want it so badly, even before all editions of the item have been delivered.
It is usually much better not to give in to FOMO, and wait patiently until all items have been delivered before making a purchase. Better still, if you patiently wait until the next gem squeeze, even bigger discounts can be had.
Trying to get into an item that is pumping hard, driven by FOMO, is almost never a good idea.
On the other hand, if you are looking to flip collectibles and make money, the best time to sell is when there is massive FOMO and the prices of a collectible are climbing. You can then buy back into the collectible at a lower price, once demand has died down.