Former Ethereum Developer Max Resnick Criticizes On-Chain Metrics as a 'Scam'
Former Ethereum developer Max Resnick has harshly criticized the numerous on-chain "metrics" in the crypto industry as essentially a scam, primarily aimed at enticing VCs to continue investing funds.
He specifically pointed out serious issues with the repeated calculations of Restaking-related data, stating that "the same ETH is counted at least 10 times," and questioned the metric definitions of several on-chain data platforms as either incorrectly calculated or meaningless, failing to accurately reflect the claimed data value.
Max Resnick also mentioned the ongoing deterioration of data in the crypto lending sector, calling for the industry to face reality, or the situation will only worsen.
Source: Public Information
ABAB AI Insight
Max Resnick, who was previously involved in core Ethereum development, left Consensys in December 2024 to join the Solana ecosystem's Anza. His public criticism continues his strict demand for the authenticity of industry data, directly warning about the metric bubble surrounding popular concepts like Restaking.
In terms of capital flow, a large amount of VC funding is attracted by superficial metrics such as high TVL and Restaking yields, while the actual deterioration in lending and repeated calculations lead to an overestimation of real economic activity. Resources are shifting from bubble narratives to projects with real use cases and sustainable models.
Similar to the industry reshuffle after the DeFi TVL bubble burst in 2021-2022, the current crypto market is in a reflective phase transitioning from "metric-driven financing" to "real adoption validation."
Essentially, this is about capital concentration: misleading or repeated metrics misguide capital allocation, as VCs rely on easily manipulated surface data for decision-making, leading to misallocation of funds and forcing rational capital to concentrate on projects with real data and sustainable business models, pushing the industry from metric games to actual economic value verification.
ABAB News · Law of Cognition
If the same ETH is counted 10 times, then TVL becomes the cheapest illusion.
The more attractive the metrics, the further they often are from the real economy.
The first step to solving the bubble is to acknowledge that it is a bubble.