LAB Trade's native token collapsed from nearly $17 to $1.25 in two days, and its market value fell from over $5 billion to $390 million. The platform blamed large sellers, while investigator ZachXBT accused market makers and major exchanges of enabling the crash.
LAB, the native token of the multi-chain trading platform LAB Trade, wiped out nearly 90% of its value in just 48 hours. The token started Tuesday near $17, slid to just over $7 by Wednesday morning, then bottomed at $1.25 the same day.
The drop shredded the token's market capitalization. It had exceeded $5 billion on Tuesday morning before falling to just $390 million by 3:30 p.m. EST on Wednesday.
LAB Trade points to large sellers
The team pointed to outside sellers. According to LAB Trade: "We're seeing significant selling pressure from large market participants." The company said its product roadmap and long-term focus remain unchanged, and noted that independent trading firms held substantial positions unaffiliated with it.
ZachXBT blames market makers and exchanges
Blockchain investigator ZachXBT rejected that account. He argued that insiders effectively controlled the entire circulating supply, letting market makers run extreme price manipulation on major exchanges. He also faulted the venues that listed the token, saying it was disappointing to see how no action was taken by Binance, Bitget, and Gate earlier to prevent it.
ZachXBT added that unlocks for investors were scheduled to begin later this month, though he flagged multiple late vesting changes in the past. His advice was to avoid trading LAB entirely.
The collapse echoes recent implosions of tokens such as RAVE, RIVER, and SIREN, which fell fast amid pump-and-dump allegations.
Source: Bitcoin.com News
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