According to Lex Sokolin (@LexSokolin), a prominent figure in the crypto industry, there is a recurring pattern of fake metrics, including inflated follower counts, wash trading volumes, and ghost accounts, which can mislead traders about actual project adoption and market depth (source: Twitter, May 9, 2025). These practices result in artificially high total value locked (TVL) and trading volumes, which may distort price discovery and risk assessments for traders. For active traders, recognizing these red flags is critical for avoiding manipulation and making informed entry and exit decisions in volatile crypto markets.

According to @ThinkingUSD, DeFi protocols are exhibiting significant fake volume numbers as they attempt to compete, raising concerns about wash trading in the industry.

According to trevor.btc, Ordinals projects raised millions, allocating a quarter of their holdings to market makers for wash trading to simulate success. These projects failed to hire staff or deliver products, with founders exiting and cashing out. Consequently, these projects have plummeted by 90%, adversely affecting the broader market.