LAB Token Plummets 97% Amid Allegations of Team-Funded Wallet Dumping
The LAB token has experienced a dramatic collapse, shedding 97% of its value in a matter of days, following accusations from prominent blockchain investigator ZachXBT that wallets funded by the project’s creators have dumped millions of coins onto the market.
This development has further exacerbated the already precarious state of LAB, which had previously defied the broader market downturn. The token had enjoyed a period of significant growth, briefly entering the top 20 cryptocurrencies by market capitalization due to consistent double- and triple-digit gains.
According to CoinGecko data, LAB reached an all-time high of over $27 just over a month ago. However, it now trades below $0.55, marking a 97% decline from its peak, with the majority of these losses occurring in recent days.
ZachXBT attributed the latest sharp decline, which saw LAB fall from $1.20 to $0.54, to substantial sales executed by the founding team. The on-chain analyst stated that a wallet initially funded by the LAB team deposited 18.4 million tokens, valued at approximately $18.3 million at the time, to the decentralized exchange Aster before liquidating the holdings on the open market.
This revelation follows an earlier warning from ZachXBT, issued a few months prior, in which he accused the LAB team of maintaining excessive control over the token’s supply and engaging in opaque over-the-counter transactions.
In a recent Telegram post, ZachXBT detailed that the entity responsible for the sales received over 196 million tokens directly from the team in April 2026. Further analysis indicates that 100 million coins were initially sent to Bitget deposit addresses on April 8, with an additional 97 million tokens transferred to other wallets later that month.
In May, 100 million LAB tokens were withdrawn from Bitget and distributed across ten separate addresses. ZachXBT argued that there was no market evidence to suggest an independent buyer had acquired such a significant position, leading him to conclude that these wallets likely remained under the control of the same entity.
After remaining inactive for nearly two months, the entity transferred and sold millions of tokens to Aster on July 10 and 11. The on-chain investigator also noted that these wallets still hold over 80 million coins, despite the recent sales.
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