Of course, I know the out-of-universe reason is that they wanted to mirror the introduction of the Romulans because the Ferengi were originally intended to be the main enemy of TNG. But in-universe, how did Starfleet have basically no knowledge of the Ferengi outside of rumours at the time of what was essentially first contact with them? I can understand how, a century prior, they knew almost nothing about the Romulans. After all, the Romulan government is essentially space North Korea and so it would be exceptionally difficult for a Romulan to reach the Federation. But the Ferengi government is nothing like that. The Ferengi seek out profit wherever they go. I know that isn't how they were originally characterised, but in-universe during early TNG there were surely Quark-types within the Alliance. (In fact, it's likely Zek was the Grand Nagus at the time.) Even if you accept that the Federation is a moneyless society (which I'm not 100% convinced of, but that's a topic for another thread) and thus not an attractive destination for Ferengi, there are other species in contact with the Federation that do use money. Were there no Ferengi doing business with the Klingons at the time? Did no non-Federation planet visited by Starfleet have Ferengi visitors? The only explanation I can think of is that a Grand Nagus other than Zek was in power at the time, one who was isolationist like the Romulans, but I don't see that lasting very long before the Nagus was removed from power by a horde of angry Ferengi whose profits had been destroyed by the lack of trade. There's definitely not enough time for the Ferengi to undergo a complete societal and political change from space pirates to space capitalists, either. Or is it really as simple as the Ferengi just keeping their distance from the Federation for whatever reason?