On-chain analyst ZachXBT has issued a stark warning about the LAB token, labeling its price chart as a deliberate trap for retail investors. The alert follows Lookonchain’s report that ten anonymous wallets withdrew 100 million LAB tokens—worth approximately $480 million—from the Bitget exchange within a 12-hour window. This transfer accounted for 32.26% of LAB’s circulating supply, raising immediate concerns about liquidity and potential sell-off collapse.
ZachXBT argued that LAB’s valuation is artificially inflated, comparing it to a low-liquidity memecoin where over 90% of the supply is locked. He cautioned that the chart would likely plummet if major holders sold, describing the upward trend as a mechanism to lure individual investors. The analyst also alleged that Shawn Liu, whom he called the de facto head of operations at Bitget, is complicit in allowing such schemes, with public face Gracy Chen merely acting as a cover. “The Chinese CEX cartel has operated for years without facing sanctions,” he wrote, vowing to escalate public attacks against the exchange.
The controversy extends to a prior incident: ZachXBT had earlier questioned Bitget’s investigation into the RAVE token, for which Chen promised an update but none was given. He linked the unresolved case to LAB’s ongoing activity, asserting that every new scam token damages the industry’s credibility. Additional on-chain analysis from SpecterAnalyst found that wallets linked to the LAB team deposited 40 million LAB (then ~$13.6M) to Bitget on April 8, and another 96 million LAB (~$63M) a week before the token began pumping on May 1. The analyst cited coordinated gas-fee patterns and aggressive on-chain buying as signs of manipulation.
ZachXBT has placed a $10,000 bounty for evidence of LAB market manipulation, including insider details about market makers, contracts, and the identity of founder Vova Sadkov (also known as Boba Sadkov). While the claims remain unconfirmed by regulators, the episode highlights the risks of low-liquidity tokens and the scrutiny facing centralized exchanges that facilitate suspicious trading.
