Tonight, I again saw a bunch of people chasing “whale addresses” and copy-trading on-chain. To put it plainly: you don’t even know whether they’re building a position or hedging, yet you still act boldly enough to hand over your trust.

Big players may buy while opening shorts, or shuffle spot assets around to use as collateral. All you see is “they bought,” so when you follow in, you end up acting as their water carrier / taking the blow. Then later they close their hedges, and you think they’ve run away…

Anyway, when I see large transfers coming in and going out now, my first reaction isn’t excitement—it’s to check: are there corresponding leveraged positions? have there been any changes in stablecoin lending? is this cross-chain arbitrage?

Lately, that whole “stacking yields” from re-staking / shared security has been noisy—but it’s the same story. Layer upon layer of nesting looks exciting, but when something goes wrong, who blows up first? Retail investors basically line up.

Before you enter, think about how you’ll get out—don’t treat copy-trading like it’s a religion.