The Real Purpose of Smart Money: Guiding Market Attention
In the early stages of the market, some funds that early discovered and invested in specific addresses are often seen as "smart money." However, when this information gradually becomes apparent to more investors, the original "smart money" seems no longer so smart. This does not mean that these funds have lost their wisdom, but rather that their goal has been achieved—successfully attracting market attention and following.
The individuals who can participate in investment at the very early stages typically fall into three categories: first, the coin issuers or individuals within their network, who have a natural information advantage; second, those investors who cast a wide net, capturing potential opportunities through multiple attempts; and third, a small number of investors with strong research capabilities who identify valuable opportunities through in-depth analysis. However, those who can gain an advantage at this stage are usually very rare. The common situation in the market primarily involves the participation of the first two types of investors.