ZachXBT flags manipulation in surging LAB token

ZachXBT flags manipulation in surging LAB token
ZachXBT flags insider trading in surging LAB token

​Blockchain investigator ZachXBT has raised concerns about possible insider trading in the recently popular token LAB. He claims the project team may have used centralized exchange listings to influence the price.

Highlights

  • ZachXBT warned of possible insider trading in LAB token.
  • LAB surged over 537% in one week, reaching above $4.65.
  • Wallets linked to the team moved tokens to exchanges before the rally.
  • Up to 99% of supply may be controlled by insiders or market makers.
  • Over 74% of futures open interest was in short positions.

Suspicious price surge

LAB, launched in late 2025, traded in a narrow range below $1 for several months. Last week, the token broke out sharply, rising more than 537% and reaching a new all-time high above $4.65. The project released no major announcements to justify such a dramatic increase.

ZachXBT pointed out that wallets linked to LAB founder Vova Sadkov transferred tokens to exchanges shortly before the price spike. According to on-chain analytics firm Bubblemaps, a significant portion of the LAB supply is held on exchange wallets, with up to 99% potentially controlled by insiders or market makers. 

 

Market structure and risks

Open interest in LAB futures exceeded $163 million, with more than 74% of positions being short. 

This suggests the recent rally may have been driven by a short squeeze. Liquidity is concentrated on Binance and Bitget, where Bitget alone holds LAB tokens worth approximately $1.2 billion.  

 

Growing risks in new token launches

The LAB case highlights the persistent problem of market manipulation in newly launched altcoins. With limited liquidity and high concentration of supply among insiders, prices can be easily influenced, often at the expense of retail investors. 

ZachXBT urged caution with tokens that show explosive growth without clear fundamental drivers, noting that similar patterns have previously led to sharp crashes and significant losses.

As we previously reported, ZachXBT alleges Axiom insider trading as Polymarket profits soar.

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