ZachXBT Alleges Ongoing LAB Token Manipulation on Major Exchanges, Urges Action

On-chain investigator ZachXBT has publicly accused the team behind the LAB token of continuing price manipulation on major centralized exchanges (CEXs), expressing frustration that platforms are not intervening to halt the activity. In a series of statements, the analyst warned that retail investors could face significant losses when locked tokens from private sales, over-the-counter (OTC) deals, and airdrops begin circulating.

Insider Control and Market Risks

According to ZachXBT, insiders hold a dominant share of the circulating LAB supply, creating conditions for coordinated price action. He cautioned that the token’s listings on well-known exchanges, appearance on trending lists, and relatively high market capitalization may mislead retail buyers into viewing it as a low-risk investment. The analyst reiterated his advice against trading such tokens, emphasizing the asymmetric information advantage held by insiders.

Previous Allegations and Industry Response

The latest allegations follow earlier claims by Moonrock Capital founder Simon Dedic, who labeled LAB a “clear scam” and accused exchanges including Gate.io, KuCoin, and Bitget of enabling the manipulation. ZachXBT previously offered a $10,000 bounty for information related to the case and called on Bitget, Binance, and Gate.io to freeze insider profits for redistribution to affected investors and to delist the token. As of now, no major exchange has publicly responded to these demands.

Implications for Retail Investors and Exchange Accountability

The situation underscores ongoing concerns about market integrity in the cryptocurrency space, particularly regarding tokens with concentrated insider supply. For retail investors, the case highlights the risks of relying solely on exchange listings and market cap as indicators of legitimacy. For exchanges, the allegations raise questions about their responsibility to monitor and prevent manipulative practices on their platforms. The lack of public action from the named exchanges may further erode trust in centralized trading venues.

Conclusion

ZachXBT’s latest statements add to a growing body of evidence suggesting that LAB token manipulation remains an active issue on major exchanges. With locked tokens poised to enter the market, the potential for retail investor losses is significant. The absence of exchange intervention thus far leaves the situation unresolved, placing the burden of due diligence squarely on individual traders.

FAQs

Q1: What is the LAB token and why is it under scrutiny?
The LAB token is a cryptocurrency that has been accused of price manipulation by on-chain analysts. Critics allege that insiders control a large portion of the circulating supply and are coordinating trades to mislead retail investors.

Q2: Which exchanges have been named in connection with the manipulation allegations?
Exchanges including Gate.io, KuCoin, Bitget, and Binance have been mentioned in the allegations. ZachXBT has called on these platforms to freeze insider profits and delist the token.

Q3: What should retail investors consider before trading tokens like LAB?
Investors should look beyond exchange listings and market cap, verifying token distribution, team transparency, and on-chain activity. Tokens with highly concentrated insider supply carry elevated manipulation risk.