When I was recently organizing address labels, the more I looked, the more I felt: you can trust them, but don’t trust them too much. To put it simply, labels are like book spine stickers—useful for categorization, but they don’t necessarily mean the address truly belongs to that “book.” An address that looks like “smart money” today might, tomorrow, turn out to be the project team splitting funds, or a market maker passing through. Especially when a new L1/L2 starts ramping up incentives to pull TVL, once the “mining, withdrawing, selling” rhythm kicks in, the capital flow looks lively—but a lot of it is driven by short-distance sprinters, so the picture is even more likely to be distorted.

I’ve started to deliberately slow down instead: first, check whether the fund flow in-and-out path is clean and whether the source is single; then look at which contracts/exchanges it interacts with; only then do I treat the labels as a reference. Being a half step slower isn’t a big deal—missing one pitfall feels much more comfortable than chasing a bit more profit.