LAB token plummets 54% after massive sales by insider entity

The price of the LAB token crashes by as much as 54% after an entity directly funded by the LAB team sells tokens en masse on the decentralised exchange Aster. Researcher ZachXBT maps out the money flows and reveals a striking pattern that dates back to April 2026.

How the sales unfold

According to ZachXBT, the entity in question deposited 18.4 million LAB tokens, worth approximately $18.3 million, on Aster over the past 48 hours and immediately began selling them on the spot market. This drives the price down from $1.20 to $0.55, a drop of 54%. At the time of writing, LAB/USDT is trading around $0.5550, a loss of more than 35% in 24 hours.

The entity received more than 196 million LAB directly from the LAB team in April 2026. The tokens were then transferred to four Bitget deposit addresses, after which they were forwarded to ten different addresses between 11 and 12 May. From 10 to 11 July, the tokens went to three Aster deposit addresses. Currently, the entity still holds another 81.5 million LAB in reserve, potentially creating further selling pressure.

LAB team’s response

The LAB team responded on X to the price drop, stating that the market movements are disappointing but that the product roadmap and long-term vision remain unchanged. The team points to significant selling pressure from large market players and claims that several independent trading firms hold large LAB positions that are not affiliated with the team itself.

The team also said it is working closely with liquidity partners and continuously monitoring the market situation. Notably, the response makes no direct reference to the money flows uncovered by ZachXBT, which actually point to an entity that was funded by the team itself. This raises questions within the LAB community about transparency and the origin of the selling wave. ZachXBT has also shared the case with Binance and Gate.io, likely with a view to possible measures from those exchanges, similar to previous cases where crypto was laundered through complex networks.