Key Takeaways:
LAB Trade's token has lost 97% of its value in seven days after on-chain evidence tied wallets funded by the project team to more than $18 million in coordinated selling.
LAB, the native token of multi-chain trading platform LAB Trade, fell 97% to about $0.41 as on-chain data linked team-funded wallets to coordinated selling. The token had climbed to around $17 earlier this month before the sell-off erased nearly all of those gains.
"An entity initially funded by the LAB team received more than 196 million LAB in April and routed tokens through Bitget before selling 18.4 million tokens on the Aster DEX, pushing the price from $1.20 to $0.55," ZachXBT, an on-chain investigator, said in a Telegram post.
The entity still holds about 81.5 million LAB, representing a significant supply overhang. A separate scheduled unlock of 16.23 million LAB, worth about $4.1 million at current prices, began July 14 as the first of monthly releases through December 2026, according to token unlock data.
The 97% collapse leaves LAB holders facing near-total losses, with recovery contingent on whether the team-linked wallets halt selling and whether buyers can absorb the monthly unlock schedule. The token's RSI at 36.6 remains below the neutral 50 level, while the MACD and OBV indicators continue to signal bearish momentum.
Team-linked wallets and the supply overhang
ZachXBT traced the selling to wallets that received tokens from the LAB team's internal distribution in April. The funds moved through four Bitget deposit addresses before roughly 100 million LAB left the exchange in May and sat dormant for weeks. The distribution resumed July 10, when the entity began selling on Aster, a decentralized exchange.
The selling wallets still control about 81.5 million LAB, a position that could enter the market at any time. ZachXBT has alleged since May that insiders collectively control more than 95% of LAB's total supply. CoinLaunch data shows 70.8% of the supply classified as "Untracked," indicating a large portion of tokens lacks publicly disclosed allocation tracking.
The LAB team burned 10 million tokens, or 1% of the supply, on July 9 in an effort to stabilize the price. On-chain data confirms the tokens were sent to a null address. The team previously blamed "large external market participants" for the decline, a claim contradicted by the on-chain evidence.
Unlock schedule adds monthly pressure
A cliff unlock of 16.23 million LAB, equal to about 1.6% of the maximum supply, began July 14 and represents the first of monthly releases scheduled through December 2026. At current prices, the unlocked allocation is worth about $4.1 million.
Only 313 presale participants contributed about $1.4 million during the token sale. At LAB's peak near $17, those allocations were briefly worth almost $977 million on paper. Even after the crash, many of those holders remain profitable because of their low acquisition cost, creating additional incentive to sell.
Technical indicators offer little relief. The RSI recovered slightly to 36.6 after reaching deeply oversold territory but remains below the neutral 50 mark. The MACD line trades below both the signal line and zero level, and the OBV indicator has fallen sharply, signaling sustained capital outflows rather than isolated profit-taking.
This article is for informational purposes only and does not constitute investment advice.
