LAB token collapses 97% amid claims of team-linked wallet dumping
Security & Exploits ·
Blockchain investigator ZachXBT says wallets funded by LAB's creators offloaded millions of tokens, coinciding with the coin's sharpest drawdown since launch.
LAB, which briefly ranked among the top 20 altcoins by market capitalization during this bear cycle, has seen its value erode almost entirely over the past month. According to CryptoPotato, the token reached an all-time high above $27 before sinking below $0.55, a 97% decline from peak to trough, with most of the losses concentrated in the final stretch of that period.
The renewed slide follows an earlier caution ZachXBT issued weeks prior, in which he alleged the LAB team retained outsized control over the token's circulating supply through opaque over-the-counter dealings. His latest findings tie the recent price action to a wallet that received funding from the team and moved 18.4 million LAB, valued near $18.3 million at the time, onto the decentralized exchange Aster before liquidating the position.
Tracing the flow further back, ZachXBT reported that the entity behind these sales was sent more than 196 tokens directly by the team in April 2026, alongside 100 million coins routed to Bitget deposit addresses on April 8 and another 97 million transferred to separate wallets later that month. A further 100 million LAB was later withdrawn from Bitget and split across ten distinct addresses in May. He noted no market signal indicating an outside buyer had acquired a position of that scale, concluding the addresses likely remained under common control.
After roughly two months of inactivity, the wallets resurfaced on July 10 and 11, sending and selling a fresh batch of tokens on Aster. Despite the repeated sales, ZachXBT said the same wallets still hold over 80 million LAB, leaving a substantial portion of supply concentrated outside the open market.
The pattern is echoed elsewhere in reporting on the episode, which similarly points to coordinated transfers exceeding 100 million LAB moved through exchange addresses over several months as evidence of possible insider manipulation. What remains unclear is whether the team or affiliated entities plan further disposals of the remaining 80 million-plus tokens, and whether exchanges or the project itself will respond to the allegations. For now, LAB has dropped out of the top 150 tokens by market capitalization, a sharp reversal from its earlier top-20 standing.