LAB token falls 90% in 48 hours

• LAB Trade's native token, LAB (CRYPTO:LAB), fell about 90% in 48 hours, reducing its market capitalisation from more than US$5 billion to about US$390 million.
• The sell-off prompted criticism of major cryptocurrency exchanges and raised fresh concerns about insider control and token distribution.
• LAB Trade said it is working with liquidity partners while maintaining its product roadmap despite heavy selling pressure.

LAB (CRYPTO:LAB) dropped about 90% over 48 hours to US$1.25, reducing its market capitalisation from more than US$5 billion to about US$390 million and drawing renewed scrutiny over its market structure.

The decline followed consecutive heavy sell-offs, with the token falling from nearly US$17 on Tuesday to just above US$7 before dropping again to US$1.25 on Wednesday as investors reacted to allegations of insider control and market manipulation.

“While today’s market activity is disappointing, our product roadmap and long-term focus remain unchanged,” the LAB Trade team said in a statement posted on X.

LAB Trade said significant selling pressure came from large market participants and added that several independent trading firms held substantial LAB positions that were not affiliated with the project, while stating it continues to work with liquidity partners and monitor market conditions.

On-chain investigator ZachXBT criticised exchanges including Binance, Bitget and Gate for not taking earlier action against alleged market manipulation, while advising traders to avoid LAB ahead of investor token unlocks scheduled later in July 2026, and as LAB is not publicly listed on a traditional stock exchange there was no share price reaction.

ZachXBT also claimed previous vesting schedule changes allowed insiders to retain effective control of the circulating supply, making it easier for market makers to influence price movements on centralised exchanges.

The decline places LAB alongside other cryptocurrency tokens including RAVE, RIVER and SIREN that have experienced rapid price increases followed by sharp declines, with similar allegations of pump-and-dump activity and concentrated token ownership.

At the time of reporting, LAB price was $1.39.