I’ve been looking at address profiling again lately: tags, clustering, and then fund-flow arrows. It really looks like you “get it” at a glance, but to be blunt, it’s more like a probability problem—not an ID card. The clustering step is especially mysterious: it’s pretty common for the same entity to get split into multiple clusters, or for several people to be forcibly bundled into one cluster. Then once you add cross-chain activity, CEX hot wallets, and mixers, the links may look pretty—but the credibility has to take a hit.

Now everyone also loves to lump RWA, things like US bond yield, and on-chain yield products together to compare them, and I find that a bit odd: on-chain, you think you’re chasing “returns,” but a lot of the time you’re actually chasing “paths” and “exit buttons.” I personally use profiling only as a support tool: first, see how funds come in and go out, how long they stay, and which protocols they overlap with—then decide whether it’s worth taking another look. Anyway, don’t get carried away just because of a “smart money” label.