On-chain detective ZachXBT published an investigative report on the maneuvers behind the $LAB token from the @LABtrade_ project. His findings revealed how the project’s Fully Diluted Valuation (FDV) was pumped to reach the $6 billion mark. Shared via his X account with 1.057 million followers, the investigation quickly caught the crypto market’s attention, garnering 3,928 likes and 592 retweets shortly after going public.
At the core of ZachXBT’s findings are private lending practices and a series of deliberately opaque over-the-counter (OTC) transactions. These behind-the-scenes deals occurred alongside token vesting schedule changes executed unilaterally by the managing team. The token holding community was not consulted regarding these sudden liquidation rule modifications.
Who Controls 95% of the Supply
The project’s manipulative pattern further extended to coordination with market makers. They operated using a free-floating supply that was never clearly disclosed to the market. According to ZachXBT’s tracking, over 95% of the total $LAB token supply is fully controlled by anonymous entities with unidentified identities and track records.
This skewed structure mirrors numerous rug pull cases investigated by ZachXBT in the past. Insiders control the majority of the supply from the start, conceal their main wallets, and then gradually dump tokens on retail investors entering late. This recurring pattern led ZachXBT to state that $LAB represents the worst aspects of current market trends, particularly retail extraction tactics.
Artificial Valuation Tactics Burden the Market
The $LAB pump illustrates a broader context across today’s crypto market. Many developers engineer artificially high FDVs during their initial launch phase. Alongside these inflated valuations, they schedule massive supply unlocks waiting to be liquidated.
These unlock schedules act as a heavy overhang on mid-term price action. For the crypto community in Indonesia, ZachXBT’s warning regarding @LABtrade_ is a clear red flag. Tokens characterized by anonymous supply control and opaque rules should be avoided from the outset. Putting money into such projects essentially amounts to providing exit liquidity for the project architects.
Reported from @zachxbt on X.
Read also: How to Read Candlestick Charts for Beginners
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
