LAB pump-and-dump fears rise as team distributes 100M tokens
On-chain signals and exchange scrutiny are reviving pump-and-dump fears around LAB after a large token distribution event.
Lookonchain reports the LAB team (via 10 Bitget wallets) distributed about 100M LAB tokens, worth roughly $480.33M, representing over 32% of circulating supply. Bitget-linked wallets reportedly still hold another 159M LAB, which the team may distribute next.
ZachXBT claims this distribution resembles prior behavior seen in the memecoin RAVE, which surged before a similar rollout. He also argues the tokenomics are suspicious: the team controls around 98% of LAB’s circulating supply, while roughly 19K holders collectively control only about 2%.
ZachXBT further accused Bitget of allowing scams to operate “behind the scenes,” citing years of limited enforcement against Chinese CEXs when profits were involved. He urged users to be vocal and warned that retail traders’ funds may not be safe.
Market impact: LAB topped out at an all-time high of $6.63 (market cap about $1.61B) before losing around 42% of market value after ZachXBT’s comments. Derivatives data cited in the report shows whales held over $78M in long positions, with more than $40M unrealized profit, yet around $15M in longs were liquidated as price fell—suggesting elevated downside risk.
For traders, the key question is whether LAB’s chart action is merely a distribution-driven volatility spike or a repeat of a classic “pump-and-dump” pattern. Until supply concentration and exchange-related claims are clarified, LAB carries a heightened risk profile.
Bearish
This news is bearish for LAB because it combines (1) a massive, centralized distribution event and (2) public accusations that the exchange may enable scams. When a team is reported to control ~98% of circulating supply, traders typically expect supply overhang and higher dump risk, especially if price spikes before distribution. The reported 42% market-cap drawdown right after ZachXBT’s remarks and the ~$15M long liquidations reinforce that the market is already de-risking.
Historically, similar “distribution + concentrated control” narratives often trigger short-term sell pressure and volatility, with traders using it to front-run potential dumps or to tighten risk limits. If follow-up data shows further wallet unlocks and continued weak demand, LAB could face prolonged downside pressure. Conversely, if the accusations are disproven and subsequent distributions are absorbed without further sharp drawdowns, the initial bearish reaction could fade—but that would likely require confirmation from credible on-chain and market-structure evidence.