Paradigm says Polymarket's trading volume "has been overstated," but the industry generally believes the problem lies in the statistical methods of third-party data tools, rather than Polymarket itself being fraudulent. There is also suspicion that Paradigm is amplifying this controversy because it has invested in its competitor Kalshi.

1. Paradigm's data head said: Polymarket's trading volume has "double counting," making it appear larger than its true value.

This is akin to saying: you count how much merchandise a mall has sold today, but someone includes "returns" in the transaction volume, causing the number to look higher.

2. The crypto community criticizes Paradigm: you have invested in Kalshi (Polymarket's competitor), trying to undermine your peer. The implication is that "since you have invested in a competitor, you naturally want to speak poorly of others."

3. The co-founder of Bankr said: the issue does not lie with Polymarket itself, but with the lack of rigor in the statistical methods of certain third-party data dashboards.

For instance, data panels like Dune and Nansen sometimes have different statistical logics, which can lead to some transactions being counted multiple times, but this has no relation to Polymarket's official data.

4. The data head of Dragonfly also mentioned: starting in 2024, professional data dashboards have already resolved the double counting issue.

This means: this problem is a thing of the past; now mature data sources have handled it well, and it is not a major issue.