On-chain investigator ZachXBT has linked a wallet initially funded by the LAB token team to the token's 97% price crash, revealing that an entity sold 18.4 million tokens on a decentralized exchange, driving the price from $1.2 to $0.55. The wallet still holds 81.5 million LAB, signaling further potential selling pressure. The LAB team denies involvement and has burned 10 million tokens in an attempt to stabilize the price.
The On-Chain Trail Behind LAB
ZachXBT published his findings on Telegram, tracing the selling to an entity that was first funded by the LAB team itself. The wallet received over 196 million LAB from the team in April 2026, then routed tokens to four Bitget deposit addresses. About 100 million LAB left Bitget in May and sat dormant for weeks before the distribution resumed on July 10.
According to the investigator, the entity began selling 18.4 million tokens on the decentralized exchange Aster, causing the LAB price to collapse from $1.2 to $0.55. ZachXBT expressed disappointment that exchanges like Bitget, Binance, and Gate did not take action against what he called "blatant market manipulation." The wallet still holds 81.5 million LAB, which could put further downward pressure on the token.
LAB Team Responds With a Token Burn
The investigation comes amid a double-digit decline for LAB, which has dropped more than 97% in the past week. At press time, LAB traded at $0.5428, down 28.35% over the past day. The team addressed the decline on X, blaming heavy selling by outside participants and stating that several independent trading firms hold substantial LAB positions not affiliated with the team.
Later, the team said it burned 10 million LAB, or 1% of the supply. On-chain data confirmed the tokens were moved to a null address. This week's slide follows an earlier pattern: LAB previously crashed 77% from a $27.96 peak in June, wiping out about $6 billion before a rally erased most of the loss. Whether the burn will steady the price or selling will resume remains to be seen.