I was just chatting with a friend about address profiling. He said there’s an address labeled as “smart money,” but I didn’t see anything particularly special from what it did on-chain. Instead, I followed it a few times and still ended up losing. 🤷

Honestly, I feel like these on-chain data labels are a bit “lagging.” The code is fixed, but people are alive. Those tagging systems may only capture past behavior patterns—then the market changes, and the address owner may have switched hands. And besides, some people might intentionally pump volume and wash the market, just to get themselves labeled as “smart money,” and then harvest retail traders.

Anyway, when I look at labels now, I treat them as just a reference. The key is still to look at the fund flows and how positions change yourself, and combine that with on-chain behavior. Put plainly, it’s like putting a parachute on the market—don’t trust the navigation too much. Think first about how to stay afloat.