Panpsychism is not as crazy as it sounds.

[Mudhammam]

and everything from the simplest forms of matter contain some form of it

Why is it contained within matter? Why doesn't it arise from material properties or interactions?
I think you're assuming that mental states are physical states rather than physical processes.

I think the fact that it does "arise" from matter, implies to some that it in some pre-existing or unexpressed form is contained within the basic structure of matter itself. Call it the "fundamentals of stuff" if you'd like. Some monists like Spinoza believed that the physical and phenomenal were two sides of the same coin, the same essential "stuff," both fundamental to the Universe. I haven't read up on Spinoza's arguments yet but at first glance, intuitively, I think it's an appealing idea and doesn't necessitate accepting the crap load of "woo-woo" sold under the guise of science or philosophy.