Diming

Diming, in the context of cryptocurrency and finance, refers to the act of covertly spreading misinformation, often with malicious intent, to manipulate the price or perception of a digital asset, financial product, or company. This can involve spreading false rumors, exaggerating negative aspects, or creating a general atmosphere of fear, uncertainty, and doubt (FUD) to drive down the price, with the goal of profiting from the subsequent decline, often referred to as "shorting". This is a form of market manipulation. The term is also sometimes used, less critically, to describe downplaying the positive aspects of an investment. It often happens in public forums or social media, where it can quickly amplify.

Diming meaning with examples

• A trader, knowing of potential bad news, began 'diming' on social media about a cryptocurrency, spreading rumors of security flaws and insider selling. His goal: to tank the value and then buy it at a discount. His actions were eventually investigated by regulators.
• Before a company's financial report, an analyst known for negativity started 'diming' the stock, citing vague concerns about market share and operational inefficiencies, aiming to influence the market ahead of the official announcement. This drove early investors to sell.
• A disgruntled employee, after being fired, launched a series of negative posts, 'diming' the company's reputation and product quality, hoping to damage its image and potentially hurt its valuation, with their comments getting considerable traction online.
• During the ICO phase of a new project, a competitor began 'diming' the offering, highlighting the team's perceived weaknesses and technical risks to dissuade potential investors and steer them towards their own, competing venture.