Open DeFi Llama and see a protocol TVL of several hundred million
You think this project is impressive.
Open Dune Analytics and see a chain
Last week’s trading volume was several billion
Do you think this chain is very popular?
Open Nansen and see an address
Hold a certain coin worth a few million
You think this is a big shot, a big-name person, a head honcho.
Ninety percent of these data are fake.
First, let’s talk about how the TVL is faked:
The simplest method —
The project team deposits 10 million USDC themselves,
Then repeatedly deposit, repeatedly withdraw, repeatedly deposit, repeatedly withdraw.
Every time you deposit, the TVL goes up once.
The TVL of several hundred million that you see is actually just that 10 million