Blockchain analytics firm BubbleMaps has issued a new warning to holders of the LAB token, predicting a sharp sell-off when early investors gain access to their locked allocations. The first cliff unlock is scheduled for July 14, 2026, and BubbleMaps cautions that it could cause significant pain for presale participants still sitting on roughly $500 million in unrealized gains.
The firm first flagged the token on June 4, noting irregular on-chain patterns and warning that “This will be ugly.” At that time, presale investors held over $1 billion in paper profits. Since then, LAB has tumbled approximately 60% in a matter of days, falling 72% from its all-time high of $27.22 on June 2. As of July 3, the token trades at $7.20 with a market cap of $2.34 billion and a fully diluted valuation of $7.51 billion.
The LAB token has been mired in controversy for months. On-chain investigator ZachXBT claimed in May 2026 that insiders control more than 95% of the token’s supply, along with opaque private loans and promotional deals offering 80% discounts and early unlocks to key opinion leaders. Lookonchain later reported that ten fresh wallets withdrew 100 million LAB tokens (worth $480 million at the time) from Bitget within a 12-hour window. The LAB team and founder Vova Sadkov have not responded to any of the investigations.
BubbleMaps has a track record of exposing similar setups. It previously warned about the PIPPIN memecoin in December 2025 after a 1,000% surge with no news, and ZachXBT linked LAB’s market-making infrastructure to other suspected manipulation tokens like RAVE, which later collapsed over 95%. With only 31% of LAB’s maximum supply in circulation, the potential for a liquidity crisis upon unlock remains extremely high.
