The LAB token has plunged 53% in the last 24 hours, dropping below $0.44, after on-chain investigator ZachXBT flagged a suspected insider dump tied to the project's team. A wallet linked to the team moved 18.5 million tokens to the Aster exchange over two days, triggering the crash. The entity behind the dump initially withdrew over 196 million LAB tokens from the team in April 2026, according to ZachXBT's analysis shared on X.
Tracing the Token Movements
The tokens were moved in batches to deposit addresses linked to Bitget, where they sat until mid-May before being withdrawn and split across ten separate wallets. After weeks of dormancy, the tokens were shifted to Aster this week, causing the price collapse. ZachXBT noted that the entity still holds roughly 81.5 million LAB tokens, suggesting further dumps could follow. The on-chain trail points to coordinated selling rather than typical market volatility.
ZachXBT's Long-Running Concerns
ZachXBT has previously raised red flags about the LAB team's lack of transparency around private placements and OTC deals, as well as unilateral changes to vesting arrangements. The token supply is highly concentrated among a small number of wallets, which he says amplifies manipulation risks. He also criticized exchanges for remaining silent despite documented evidence of suspected market manipulation, questioning what it takes for enforcement to act.
Traders Eye the July 14 Unlock
Trader Zaynnode suggested the dump was preplanned and expects a price pump within one to two weeks, though the timing remains uncertain. The crash occurred just before a major presale token unlock on July 14, which could unleash additional selling pressure as early buyers receive their tokens. LAB is down 40% today and nearly 100% over the past week, making the unlock a critical event for holders.
Team Silence Raises Questions
The LAB team has not addressed the allegations or the wallet trail, instead posting routine updates about ecosystem improvements. ZachXBT and others interpret this silence as avoidance rather than confidence. With 81.5 million tokens still held by the suspected insider wallet and the July 14 unlock looming, selling pressure may persist. Until the team responds to the documented evidence, analysts advise caution on any price bounces.