The AI trading terminal project token LAB hit a new high of $16.23 on June 1. On May 14, on-chain investigator ZachXBT released an investigation report on the project, saying that around 95% of the LAB token supply may be held by insiders; after it reached the new high, ZachXBT reiterated on X that this was the last fraudulent pump before the market maker unlocked all hidden supply in an OTC private placement.
LAB history new high timeline: six weeks rising from $2.15 to $16.23
On May 1, 2026, the trading price of the LAB token was about $2.15, and by June 1 it reached the all-time high of $16.23. Over five weeks, the cumulative increase was over 580%. Starting May 29, the LAB price accelerated upward; the week-on-week increase was more than 250%. When it hit its all-time high, the LAB market cap briefly ranked above BCH and TON, but later that same morning it fell back to $14.66.
ZachXBT May investigation: three specific allegations
In an investigation posted on X on May 14, ZachXBT made the following allegations:
First: It estimates that around 95% of the LAB token supply may be held by insiders;
Second: One signer among multiple multisig contracts of the LAB team is linked to an insider suspected to be related to on-chain manipulation activities involving the RIVER token. This insider received over $12 million worth of RIVER tokens through deposit addresses from two centralized exchanges;
Third: The founder of LAB has ties to a prior project, ESE. After the team left, ESE investors said they felt abandoned. As of the time of reporting, the LAB project team had not issued any public response to the above allegations.
Liquidation data: shorts absorbed over 84% of more than $19 million
According to market liquidation data, during this LAB pump, $16.5 million in short positions were liquidated, $2.6 million in long positions were liquidated, for a total of over $19 million. Shorts absorbed over 84% of the liquidation losses.
The analytics platform Aixbt posted on X, saying this situation was a “dare game among concentrated holders,” and also warned that LAB is about to undergo token unlocks. The original text reads: “With low circulating supply, the price may keep surging, but you are trading with concentrated holders, who can exit at any time—volatility will be extremely violent.”
FAQ
What conclusions did ZachXBT reach in its investigation of LAB, and how did LAB respond?
In its May 14 investigation, ZachXBT alleged that around 95% of the LAB tokens could be held by insiders, and it linked multisig fund flows to manipulation activities involving the RIVER token. As of the time of reporting, the LAB project team had made no public statements or rebuttals regarding the above allegations.
What was LAB’s market cap ranking level specifically when it hit the all-time high?
When LAB hit $16.23 on June 1, its market cap briefly exceeded $6 billion, temporarily placing it among the top 20 crypto assets by market cap on CoinGecko, with its ranking above BCH and TON. After the price fell back to $14.66 that day, the ranking dropped accordingly.
What is the specific impact of the “token unlock” on LAB, and has the unlock schedule been announced?
A token unlock refers to previously locked tokens becoming available to trade in the market, increasing the token supply available. Both Aixbt and ZachXBT mentioned in their statements that LAB is approaching a token unlock, but as of the time of reporting, the LAB project team has not publicly disclosed the specific unlock date or size.
