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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.
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.
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.
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.