The LAB token has collapsed 97% from its all-time high of $27, now trading below $0.55, after on-chain investigator ZachXBT linked massive token sales to wallets funded by the project's team. The token, which briefly ranked among the top 20 altcoins by market capitalization, has fallen out of the top 150 following the sell-off.
ZachXBT's Allegations
ZachXBT, a well-known blockchain sleuth, had warned the community weeks earlier about potential risks surrounding LAB, accusing the team of excessive supply control and opaque over-the-counter deals. In a recent Telegram post, he detailed that a wallet initially funded by the LAB team deposited 18.4 million tokens — worth roughly $18.3 million at the time — onto decentralized exchange Aster before selling them on the open market. This triggered LAB's drop from $1.20 to $0.54 in a matter of days.
On-Chain Evidence
According to ZachXBT, the entity behind the sales received over 196 million LAB tokens directly from the team in April 2026. On April 8, 100 million tokens were sent to Bitget deposit addresses, followed by another 97 million transferred to other wallets later that month. In May, 100 million LAB was withdrawn from Bitget and distributed across ten separate addresses. ZachXBT argued that no independent buyer could have accumulated such a large position without market evidence, suggesting the wallets remained under team control.
After lying dormant for nearly two months, the entity moved and sold millions of tokens to Aster on July 10 and 11. The wallets still hold over 80 million LAB despite these sales, raising concerns about further potential dumping. The token's rapid decline underscores the risks of centralized token supply and opaque team actions in the crypto space.