LAB Crypto Faces Manipulation Claims as Analysts Flag Insider Activity

Key Insights

• On-chain investigator ZachXBT previously claimed insiders controlled more than 95% of LAB supply.
• Bubblemaps said wallets moved roughly $300 million worth of LAB before a major rally.
• Crypto traders are raising concerns over recurring token pumps linked to centralized exchange listings.

LAB crypto is drawing increased scrutiny after a sharp rally pushed the token above $20. While the token has become one of the market’s strongest performers in recent weeks, on-chain analysts and community members are questioning whether the surge reflects genuine demand or coordinated market activity.

Blockchain analytics platform Bubblemaps reported that several wallets transferred approximately $300 million worth of LAB shortly before the latest price surge. According to the firm, wallets moved roughly 1.5% of the token supply to the decentralized perpetual futures platform Aster before the rally accelerated.

LAB serves as the native token of LABtrade, a multichain trading platform. Although its token generation event took place in Oct. 2025, trading activity intensified in May as volume expanded across several centralized exchanges.

ZachXBT Flagged LAB for Insider Control and Lack of Transparency

Interestingly, onchain sleuth ZachXBT had flagged the token in mid-May, noting that insiders held the majority of the supply. According to ZachXBT, there is a lack of transparency around LAB distribution, with no publicly available, accurate information.

However, he claimed that his analysis suggests insiders, including investors, founders, and promoters, currently own around 95% of its supply. The onchain investigator explained that the project’s investors include Lemniscap, OKX, Animoca, GSR, Gate, Kucoin, Mirana, & Amber.

Many of these investors are crypto exchanges and market makers, and ZachXBT alleged that insiders were manipulating the token price to extract value from retail traders.

They also highlighted several other issues with the project, including that the LAB team unilaterally changed its Legion public sales term from a 3-month cliff to a 9-month cliff.

Interestingly, ZachXBT’s investigation also shows that founders and insiders have been involved in several private loan and OTC deals using the token. It appears that the trading activity associated with these deals, which usually offer LAB at a discount to insiders, is the primary price driver.

Crypto Community Call for Exchanges to Take Action as LAB Continues to Soar

Despite ZachXBT’s investigations and the recent post by Bubblemaps, LAB continues its parabolic performance. The token is up more than 35% over the past 24 hours and has increased by almost 1000% in 30 days, while gaining a whopping 18,000% year to date.

LAB continues to soar despite concerns. Source: CoinMarketCap

However, the concerns remain with the crypto community calling on the centralized exchanges that have listed the token to take action. ZachXBT has now expressed disappointment with exchanges.

He had earlier called on Bitget, Gate, Bybit, and Binance to delist the token, freeze profits for insiders, and distribute them to users. In his most recent post, he observed that the price will crash once all the hidden supply is unlocked.

Meanwhile, Bubblemaps noted that LAB’s performance is becoming a pattern. Several tokens, including SKYAI, PIPPIN, and RAVE, have all shown signs of manipulation through centralized exchanges.

ZaxhXBT also criticized the practice, noting that “Retail traders get baited in due to top CEX listings, trending lists, & high market caps which create the illusion of safety.”

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