The LAB token has once again found itself at the epicenter of a dramatic crash. A new large-scale sell-off has been recorded, causing the asset's price to plummet another 35% — from $0.34 to $0.22. This is not the first episode in a series of suspicious movements I have been tracking over the past several weeks.
On July 14, an entity linked to the project transferred 17.9 million LAB (approximately $7.2 million) from the Bitget exchange to a KuCoin deposit address. Almost immediately after the deposit, part of the coins were withdrawn to a separate wallet, followed by aggressive selling through the Aster spot platform. This activity triggered the sharp price drop.
Notably, the entity changed its "fingerprints" — the standard patterns of fund movement. This is a clear attempt to confuse traces and conceal the source of funding after an investigation began. Such manipulations with token routes significantly complicate tracking the origin of digital funds, but they do not make them invisible to experienced analysts.
Timeline of the Disaster
The first warning signs appeared as early as mid-May. By June 1, it became evident that LAB was continuing manipulations on centralized exchanges through a market maker. At that time, the asset's market capitalization reached $5.7 billion, with a fully diluted valuation of $14 billion — a classic illusion of reliability created artificially.
The next blow came on July 8: within 24 hours, the price crashed by 85% — from approximately $14 to just under $2. My disappointment stems from the fact that major platforms such as Binance, Bitget, and Gate did not take timely measures to prevent this collapse.
By July 12, I had revealed details of a new wave of sell-offs. Over 48 hours, the entity initially funded by the LAB team deposited 18.4 million LAB (about $18.3 million) onto Aster and began selling them, leading to another 54% drop — from $1.2 to $0.55.
Who Is Behind the Dump?
According to my data, this entity received over 196 million LAB from the project team back in April 2026. The coins were transferred to Bitget deposit addresses. As of the latest analysis, the entity still held 81.5 million LAB.
All of the token's free supply was under the control of insiders. This is precisely what led to such sharp price manipulations on exchanges. Retail traders are lured in by listings on major platforms and high market capitalization, creating an illusion of reliability. But the reality is that behind these numbers lie solely the actions of a narrow group of individuals.
Expert Commentary: In my view, the situation with LAB is a classic example of a pump-and-dump scheme using insider information and controlled exchange flows. Until the project team provides a transparent report on token distribution and freezes insider addresses, there can be no trust in this asset. Retail investors should approach trades with LAB with extreme caution, as each new "dump" could be the last for their capital.