The "Makeup" Trap Before IPO

The phenomenon of exaggerating and embellishing data before a project goes public and raises funds is commonplace in the crypto market. Many projects temporarily boost trading volume, fake user numbers, and inflate ecosystem size before public fundraising, creating a false sense of prosperity for investors. It's like a company suddenly dressing up extravagantly before going public, with financial statements carefully "made up."

The problem is, once the funding is completed and the lock-up period ends, these false data often reveal their true nature. Project teams cash out and leave, and investors realize they've bought a "mask." Trading depth disappears, user activity plummets, code updates halt—truth comes to light.

How to identify? On-chain data is more reliable than official statements. Trading partner depth, real wallet activity, code submission frequency, community discussion heat—these don't lie. The greater the contrast in data before and after fundraising, the more obvious the risk signals. When investing in crypto projects, first turn on the "Lies Detector," and don't be fooled by temporarily dazzling numbers.