Blockchain sleuth ZachXBT just dropped a massive investigation into the LAB token that should make every trader pause. The project recently pumped to a $6 billion fully diluted valuation, but the numbers behind the scenes don't add up.
Is this a legitimate trading platform or just a giant machine designed to extract money from regular people?
The biggest problem is with LAB token circulating supply, nobody knows how many coins are actually out there from 1 billion total supply. Major tracking sites like Coingecko (76.5M tokens) and CoinMarketCap (309.9M tokens) show different data. Even the official project documents fail to give a clear breakdown of where the coins went.
As per ZachXBT’s on-chain data based research, insiders likely control more than 95% of the current supply. This gives a tiny group of people total power over the price. When a few people own almost everything, they can move the market however they want.
The founders, Vova Sadkov and Mark, previously ran a project called Eesee that left investors feeling burned. Now, it looks like they are using the same playbook with their new platform.
The investigation uncovered private loan contracts that retail investors never knew existed. One draft from early 2026 shows a BVI shell company called The Lab Management Ltd. borrowing money at 7.5% interest per month. If they default on the loan, they pay it back in the native token at market price.
Source: X Account
These secret deals create a hidden supply that can dump on the market at any time. Mark has reportedly been asking for buyers in public Telegram groups to sell tokens off the market. Some of these deals offer the LAB token at a 60% discount with a short 5-month wait time.
Even influencers, known as KOLs, are getting special treatment. Recent pitches offered them an 80% discount if they posted positive things about the project on social media. This creates a fake sense of hype while the people promoting it are getting coins for almost nothing.
Data shows that money from the project is moving into personal exchange accounts. Wallets tied to the LAB token buybacks have sent funds to accounts linked to Vova’s personal NFTs and ENS names. Mixing business money with personal money is a huge red flag in the financial world.
There is also a clear link to an insider who was involved in manipulating other tokens like RIVER. This same person received over $12 million in tokens across various exchanges. It seems a specific group of market makers is running a "playbook" on several different coins to trap retail buyers.
In March and April of 2026, insiders moved 226 million tokens to Bitget. Just a few days ago, 100 million of those tokens were pulled out. This massive move often happens right before a big price swing or a dump on unsuspecting buyers.
Right now, the LAB token price is sitting at $5.5, down about 1.16% in the last day. While the rest of the market grew by 2.04%, this project is starting to lag behind. This usually happens when capital starts flowing out of risky altcoins and back into safer assets.
Source: CoinMarketCap Official
The next few weeks will be very tense for holders. There are rumors of a token unlock starting in June, though the team has a history of changing vesting terms whenever they want. They already moved a public sale cliff from 3 months to 9 months without asking anyone.
If the price falls below the $5.50 support level, things could get ugly fast. The next stop would likely be $5.20 as the hype fades. It seems, retail traders are the only ones without the full story, while the team and market makers know exactly when the next move is coming.
Disclaimer: This article is for information purposes only. All the information and facts are based on market present data. The article itself does not claim anything.
