One thing I’ve noticed lately is how the meaning of FOMO goes beyond just a simple internet term. It’s really a psychological mechanism that controls our decisions, especially in financial markets.

Look, FOMO—or fear of missing out—is nothing new, but it definitely accelerated with social media. Before Facebook, Instagram, and Twitter, people weren’t so focused on what others were doing. Now? We’re constantly seeing other people’s experiences that seem incredible to us, and that creates real anxiety. The term was formally popularized in the early 2000s thanks to strategists like Dan Herman, but it was the internet that took it to the extreme.

In financial markets, the impact is brutal. During the 2017 crypto boom, we saw thousands of people start investing without any real research—just because they read that others were making money. The same happened with market volatility during the pandemic. In that context, the meaning of FOMO is pure irrationality driven by stories of massive gains. People bought without thinking, and when corrections came, many lost everything.

Tech companies know this perfectly well. Push notifications, limited-time offers, exclusive events... everything is designed to create that sense of urgency. On trading platforms, for example, you see them launch new coins or exclusive competitions, and suddenly everyone wants to take part. It’s pure psychology.

What’s interesting is that FOMO also shapes the entire market’s trends. Meme stocks are a perfect example: values inflated by the frenzy of social media buying, where most people don’t even have the slightest idea what they’re buying. That creates real volatility and moves markets.

The truth is, understanding what FOMO means and how it works is crucial if you invest—or simply consume content on social media. It’s not bad to stay informed, but you have to distinguish between making conscious decisions and getting swept up in other people’s panic. That said, it’s easier to say than to do when you see everyone else making money except you.