The native token of multi-chain trading platform LAB Trade, LAB, has suffered a catastrophic 97% price collapse over the past week, plunging from around $17 to as low as $0.41. The crash, which wiped out nearly all of the token's recent gains, has been traced to coordinated selling from wallets linked to the project's team, according to on-chain investigator ZachXBT.
ZachXBT's findings show that a wallet funded by the LAB Trade team transferred over 196 million LAB in April. These tokens moved through Bitget deposit addresses and eventually reached a selling entity that offloaded an additional 18.4 million LAB (worth $18.3 million) in the last 48 hours alone, driving the price from roughly $1.20 to $0.55. The investigator alleges that insiders control more than 95% of LAB's total supply, a claim that has intensified scrutiny of the project.
Adding to the pressure, a scheduled token unlock of 16.23 million LAB—about 1.6% of the maximum supply—is set for July 14, worth around $4.1 million at current prices. This is the first monthly release in a schedule running through December 2026. Further, CoinLaunch data indicates that 70.8% of the total supply remains "Untracked," meaning it could enter circulation without warning.
Only 313 presale investors participated, contributing $1.4 million; at LAB's peak, their holdings were worth nearly $977 million on paper. Despite the crash, many remain profitable due to extremely low acquisition costs. The project previously blamed "large external market participants" for the collapse and burned 10 million LAB, but on-chain evidence points squarely at internal wallets.
Technical indicators on the LAB/USDT daily chart remain bearish: RSI at 36.6 signals weak momentum, MACD stays negative, and OBV shows sustained capital outflows. Analysts warn that until distribution from team-linked wallets and monthly unlocks subsides, the risk of further downside remains high.
