Recently, I saw someone using the "smart money" label as if it were the Bible, which is both hilarious and a bit unsettling. Address profiling, to put it simply, is just attaching a persona to a string of characters; it can be referenced, but don’t trust it too much. On-chain data tools are indeed convenient, but it's normal for the tagging system to lag. Flip through, peel off a few layers, find a middleman pool to wash through, and the profile starts playing out the story you want to see.

The pitfalls I’ve revisited and learned from are basically the same: seeing a certain type of address buying, and then following; only to find out they’re just doing hedging/rebalancing, or it’s simply a mislabeling of a hot wallet of an exchange. Later, I learned to be smarter: first look at the fund flow “why is it going this way,” then see “where does it go after,” and avoid focusing too much on those flashy clustering conclusions. Anyway, don’t treat tools as conclusions, just as clues.