LAB Token Crashes 97% as ZachXBT Links Massive Sales to Team-Funded Wallets

The LAB token has suffered a devastating crash, losing 97% of its value after on-chain sleuth ZachXBT linked massive sell-offs to wallets initially funded by the project’s team. According to CoinGecko, LAB reached an all-time high of $27 in May, briefly ranking among the top 20 altcoins by market cap. It now trades below $0.55, with most losses occurring in the past week.

ZachXBT, who had warned the community about potential issues weeks earlier, claimed in a Telegram post that a wallet funded by the LAB team deposited 18.4 million tokens (worth roughly $18.3 million at the time) onto decentralized exchange Aster and subsequently sold them on the open market. This sell pressure accelerated the token’s decline from $1.20 to $0.54.

The investigator detailed a pattern of suspicious token movements dating back to April. In April, 196 million tokens were sent directly from the team to an entity. Of those, 100 million were moved to Bitget deposit addresses on April 8, and another 97 million were transferred to other wallets later that month. In May, 100 million LAB was withdrawn from Bitget and distributed across ten separate addresses. ZachXBT argued there was no market evidence of an independent buyer acquiring such a large position, concluding the wallets likely remained under the same entity’s control.

After lying dormant for nearly two months, the entity transferred and sold millions of tokens to Aster on July 10 and 11. Despite these sales, ZachXBT noted the wallets still control over 80 million coins. The blockchain investigator had previously accused the LAB team of maintaining excessive control over supply and engaging in opaque over-the-counter transactions. The recent dump has worsened the token’s already steep decline, erasing nearly all its earlier gains.

Source: https://cryptopotato.com/lab-token-crashes-97-as-zachxbt-links-massive-sales-to-team-funded-wallets/