Nubit founder Yu Feng stated at X that many protocols in the current BTCFi ecosystem create a false sense of locked assets through offline pre-signed transactions. This method does not actually lock Bitcoin on the mainnet; instead, it gives the illusion of being 'locked.' Users can submit multiple pre-signed transactions with the same UTXO, allowing multiple protocols to count it as TVL, but in reality, this Bitcoin is not truly locked anywhere. This operation leads to a false inflation of TVL and serious trust issues.

Founder Yu Feng proposed two solutions: first, to truly put transactions on-chain by locking funds through Bitcoin script addresses; second, to design using zero-knowledge proofs to make the lock-up both transparent and secure, avoiding double-spending risks.