How Do “Sybil Attacks” Pose a Risk to the Integrity of Active User Count Metrics?

A Sybil attack is when a single entity creates and controls numerous pseudonymous identities (addresses) to gain disproportionate influence or rewards within a network. In the context of active user count, a successful Sybil attack artificially inflates the number of unique, active addresses, giving a false impression of organic adoption and network health.

This undermines the integrity of the metric as a reliable indicator for valuation.