The $LAB token (@LABtrade_) suddenly surged to a $6 billion fully diluted valuation (FDV). That figure was not the result of organic growth, but rather a manipulative pump. On-chain investigator ZachXBT, who has 1.06 million followers, published an in-depth investigative report exposing the scheme behind the token.
According to his findings, the multi-billion-dollar valuation was controlled through a supply monopoly. Parties affiliated with $LAB were found to hold control over more than 95% of the total circulating supply. This near-absolute control was paired with a concealed public float. Because the exact public float was unknown, pumping the price became exceptionally easy. The report quickly garnered widespread attention, accumulating 3,959 likes and 603 retweets - making it one of ZachXBT’s most viral investigations this month.
The Retail Extraction Playbook
Supply control was only one of several tools used by $LAB. ZachXBT revealed a series of other findings, ranging from private lending schemes and non-transparent OTC channels to covert coordination with market makers and unilateral token release (vesting schedule) changes by developers.
This combination locked retail investors in place while insiders prepared to sell tokens at the top. The pattern repeats the “retail extraction” tactic frequently exposed by ZachXBT in prior cases: insiders dumping tokens directly onto retail investors who were unaware of the risk. They created the appearance of a vibrant market merely as a stage to offload their holdings.
Addressing this string of manipulations, ZachXBT issued sharp criticism. He stated that the $LAB token represents everything wrong with the current retail scam meta. It creates a zero-sum game where the profits of affiliated groups are funded by the losses of regular investors who arrived late.
Market Consolidation Phase
The $LAB scandal emerges amid a major consolidation phase sweeping the crypto market. The market structure is contracting, marked by numerous small-to-medium exchanges deciding to shut down operations. BitMart is scheduled to close in August 2026, followed swiftly by BitMEX in September of this year.
In a shrinking market environment, liquidity has become a scarce commodity. However, the orchestrators behind $LAB capitalized on the remnants of retail enthusiasm to inflate prices. A $6 billion paper FDV means nothing when total supply control is concentrated in the hands of a single party holding the exit keys.
Reported by @zachxbt on X.
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.
