Onchain investigator ZachXBT has linked an entity initially funded by the LAB team to a 97% token price collapse.
The findings deepen scrutiny of LAB Trade, whose tokens lost significant value during the recent collapse. The team rejects any reason at the project level.
The track is on the chain behind the LAB
ZackXBT Publish your latest findings On telegram. He traced the sale to an entity that was first funded by the LAB team.
The wallet received over 196 million LAB from the team in April 2026. It then directed the tokens to four Bitget deposit addresses.
Nearly 100 million LABs left Bitget in May and lay dormant for weeks. Distribution resumed on July 10.
The investigator reported that the entity began selling 18.4 million tokens on the platform Decentralized Exchange (DEX) AsterWhich caused the price of LAB to drop from $1.2 to $0.55.
Still holds 81.5 million LAB. This accumulation indicates further potential selling pressure.
“LAB price collapsed this week shortly before rumored unlocks were scheduled to begin… It is disappointing that no action has been taken by Bitget, Binance or Gate to allow blatant market manipulation of tokens against users,” ZachXBT He said.
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The LAB team responds by burning the token
The investigation comes amid a double-digit decline in the price of the LAB token. BeInCrypto markets data showed That the alternative currency has It fell more than 97% over the past week. At press time, LAB is trading at $0.5428, down 28.35% over the past day.
Meanwhile, the team addressed the decline in X. It blamed heavy selling by external participants.
“We are seeing significant selling pressure from large market participants. Several independent trading firms also hold senior positions in the LAB that are not affiliated with our team,” mail He reads.
The team later said it had burned 10 million LAB, or 1% of the supply. On the chain Data Confirms the transfer of tokens to an empty address.
This week’s segment follows a previous pattern. laboratory Previously crashed 77% From a peak of $27.96 in June, wiping out about $6 billion.
A successful career Then most of it is erased Loss before the last downturn. The coming days will test whether the burn will stabilize the price or whether selling will resume.
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