Blockchain active users can be misleading metric: Crypto data scientist

Active user count can be a misleading metric for measuring the state of a crypto ecosystem as a small group of users can generate a significant portion of activity across multiple wallets, argues the co-founder of a blockchain analytics provider.

0xScope’s co-founder and chief data scientist, Philip Torres, told Cointelegraph amid the Bitget EmpowerX Summit that between monopolistic founding entities, bots, exploiters and

Torres explained unlike email addresses, creating and controlling multiple crypto wallets isn’t too complicated if you know what you’re doing.

Some use what is known as HD wallets — hierarchical deterministic wallets — which generate a new key pair from a master key pair. Simply put, it’s a way to generate multiple public addresses via a master set of mnemonic words.

“It’s very easy for one person to control multiple wallet addresses compared to [how], usually, people do not have more than a few emails,” he added.

Magazine: Big Questions: What’s with all the crypto deaths?