LAB token crashes 85% to $2 as insider warnings prove true

LAB, the native token of multi-chain trading terminal LAB Terminal, fell 85% to $2.41 from $14 in 24 hours as months of insider manipulation warnings materialized.

"Insiders have controlled the entire float which lead to extreme price manipulation on CEXs via MM," ZachXBT, the on-chain investigator who flagged the token in May, said. "Disappointing to see how no action was taken by Binance, Bitget, and Gate earlier to prevent it."

Trading volume surged more than 340% as the token unwound, with market capitalization falling to about $754 million from a fully diluted valuation that had once approached $14 billion, per CoinMarketCap data. ZachXBT alleged in May that insiders controlled more than 95% of LAB's effective float through OTC deals, private allocations, and undisclosed team holdings, making genuine price discovery impossible. The token launched in October 2025 with only about 312 million of its 1 billion maximum supply in circulation.

The crash raises questions about exchange accountability as major token unlocks scheduled for July and August 2026 threaten to release additional supply into an already fragile market. ZachXBT has tied LAB to a pattern of similar collapses — including RAVE, RIVER, and EDGE — that he attributes to an unknown market maker operating across a cluster of exchanges, with Bitget as the primary venue.

A warning that went unheeded

ZachXBT first flagged LAB in early May after the token surged more than 500% with no product announcement, briefly touching a $6 billion fully diluted valuation. He documented private loan contracts carrying rates as high as 7.5% a month signed on behalf of a BVI-registered shell and alleged the team unilaterally changed vesting cliffs from three months to nine without consent. LAB's founders, Vova Sadkov and a co-founder identified as Mark — the same team behind Eesee, an earlier project ZachXBT said left investors abandoned — issued no public rebuttal.

The on-chain investigator turned his fire on the exchanges that listed the token, calling for venues to freeze manipulator profits and redistribute them to affected users rather than continuing to collect trading fees. Neither Binance, Bitget, nor Gate has publicly addressed his call.

What comes next

With 69% of the total supply still locked and unlocks beginning this month, LAB faces significant supply overhang. If the current circulating supply of 312 million tokens already struggles to maintain price stability, the release of additional tokens could push prices lower. The episode adds to a lengthening 2026 list of insider-controlled token implosions and leaves open whether major exchanges will change how they vet low-float, high-FDV tokens.

This article is for informational purposes only and does not constitute investment advice.