Onchain investigator ZachXBT has linked an entity initially funded by the LAB (LAB) team to the token’s 97% price crash.
The findings deepen scrutiny of LAB Trade, whose token has lost substantial value through the latest crash. The team rejects any project-level cause.
The On-Chain Trail Behind LAB
ZachXBT published his latest findings on Telegram. He traced the selling to an entity first funded by the LAB team.
The wallet received more than 196 million LAB from the team in April 2026. It then routed tokens to four Bitget deposit addresses.
Roughly 100 million LAB left Bitget in May and sat dormant for weeks. The distribution resumed on July 10.
The investigator reported that the entity began selling 18.4 million tokens on the decentralized exchange (DEX) Aster, driving the LAB price down from $1.2 to $0.55.
It still holds 81.5 million LAB. That overhang points to further potential selling pressure.
“This week the LAB price collapsed shortly before the rumored unlocks were scheduled to begin…It is disappointing no action was taken by Bitget, Binance, or Gate for allowing blatant market manipulation on tokens against users,” ZachXBT said.
Follow us on X to get the latest news as it happens
LAB Team Responds With a Token Burn
The investigation comes amid a double-digit decline in the price of the LAB token. BeInCrypto Markets data showed that the altcoin has dropped more than 97% in the past week. At press time, LAB traded at $0.5428, down 28.35% over the past day.
Meanwhile, the team addressed the decline on X. It blamed heavy selling by outside participants.
“We’re seeing significant selling pressure from large market participants. Several independent trading firms also hold substantial LAB positions that are not affiliated with our team,” the post read.
The team later said it burned 10 million LAB, or 1% of the supply. On-chain data confirms the tokens 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.
A succeeding rally then erased most of the loss before the latest downturn. The coming days will test whether the burn steadies the price or the selling resumes.
Subscribe to our YouTube channel to watch leaders and journalists provide expert insights
Bitrue