How many retail investors has FOMO killed? On-chain data reveals the truth

The scariest thing in crypto isn’t the drop—it’s FOMO.

It looks like a simple psychology issue, but in reality, it’s the biggest money pit in the market. When a coin suddenly pumps, retail investors rush in, always thinking, “If I don’t buy now, I’ll miss the next 100x.” The result? Buying at the top, then starting to question life choices.

What is FOMO? It stands for Fear Of Missing Out—the fear of being left behind. Psychologists first studied this phenomenon as early as 2000, but in crypto, its destructive power is maxed out. Why? Because here, trading is 24/7—a coin can jump 50% in a second, and drop 50% just as fast.

How does FOMO wreck the market? A pump starts → Retail sees the gains → Panic buying → Buy orders pile up → Price climbs higher → More people FOMO in → Eventually a huge bubble forms. At this point, a single word from whales or project teams can pop it, and retail investors lose everything.

Crypto also has the opposite concept—JOMO (Joy of Missing Out), meaning “missing the opportunity actually feels great.” Long-term investors use this term often, because they see through it: the most profitable opportunities are usually not during the craziest hype, but when everyone else has forgotten about them.

How do you survive longer? Five simple rules:

1. Set your goals and stick to them—discipline beats intelligence
2. Do your own research before entering—don’t FOMO just because others do
3. Set stop-losses—greed is fatal
4. Focus on long-term value—don’t let 5-minute candlesticks drive you crazy
5. Whenever you feel the urge to ape in, take a deep breath and cool off for 30 seconds

Core truth: FOMO creates opportunities, but 99% of the time, it’s for someone else. If you enter during price surges, you’re basically chasing the top. The real winners are those who do the opposite—buy when everyone is scared, sell when everyone is greedy.