After warning the community a couple of weeks ago about potential issues around the $LAB token, popular blockchain investigator ZachXBT claimed now that wallets funded by its creators dumped millions of coins.
This has only worsened the overall state of $LAB, which has plummeted to a new low by erasing 97% of its value in days.
Recall that $LAB was once (and briefly) the rockstar of the ongoing bear cycle. It defied the overall market sluggishness and bearishness, posting some impressive gains. It even entered the top 20 alts by market cap after continuous double- and triple-digit increases.
Its all-time high came just over a month ago at over $27, according to CoinGecko data. Now, though, it trades below $0.55 after plunging by 97% since that peak. Most of those losses came in the last several days.
ZachXBT attributed the latest decline, which pushed $LAB down from $1.20 to $0.54, to major sales by the founding team. The on-chain sleuth said a wallet initially funded by the $LAB team deposited 18.4 million tokens (worth around $18.3 million at the time) to decentralized exchange Aster before selling the fortune on the open market.
This came a few months after his initial warning, in which he accused the team behind $LAB of maintaining excessive control over its supply and engaging in opaque over-the-counter transactions.
In his latest Telegram post, ZachXBT said the entity behind the sales received more than 196 tokens directly from the team in April 2026. Further data points to 100 million coins initially sent to Bitget deposit addresses on April 8, followed by another 97 million tokens transferred to other wallets later that month.
100 million $LAB was withdrawn from Bitget and distributed across ten separate addresses in May. ZachXBT argued that there was no market evidence suggesting an independent buyer had purchased a position of that size, and he concluded that the wallets likely remained under the control of the same entity.
After staying dormant for almost two months, the entity transferred and sold millions of tokens to Aster on July 10 and 11. The on-chain sleuth also noted that the wallets still control over 80 million coins despite these sales.
