CRYPTO‐MANIA: How fear‐of‐missing‐out drives consumers’ (risky) investment decisions

Abstract The cryptocurrencies (cryptos) market has undergone rapid development in the last years. Although this market is highly volatile and has frequently crashed, consumers show continued interest as well as widespread possession of such assets. Therefore, this research explores the mechanisms underlying consumers’ engagement in crypto trading. The results of five studies including eight experiments reveal that externally evoked fear‐of‐missing‐out (FOMO) appeals influence consumers’ investment decisions and that this effect is mediated by affective processes and moderated by impulsivity. The results further demonstrate that FOMO appeals lead consumers to repeated investment decisions, even if prior losses have been incurred. Finally, the findings suggest that the effects of FOMO can be mitigated via communication strategies (i.e., fear messages). The results provide notable implications for academics and policymakers concerned with consumers’ crypto engagement.