Key takeaways
- On June 1, the AI LAB trading token defied allegations of insider manipulation to reach an all-time high of $16.23.
- LAB’s explosive rise sparked more than $19 million in liquidations and a brief top 20 spot on CoinGecko.
- ZachXBT warns investors of extreme volatility ahead of the upcoming LAB token unlock by concentrated holders.
New all-time highs for LAB
On June 1, LAB, the token of an AI trading terminal project, hit a new all-time high of $16.23, a gain of over 100% from its price of $7.31 approximately 24 hours earlier. This spike pushed its weekly gains above 250% and more than 580% since May 1, when it was trading around $2.15. The token, which briefly pushed LAB’s overall market cap well past the $6 billion mark, has continued to grow despite serious concerns about the project’s tokenomics and allegations of insider trading.
Market data showed that LAB’s brief surge beyond the $16 mark allowed it to momentarily break into the top 20 coins by market cap followed by Coingecko. Although it eventually retreated to $14.66 at 9:08 a.m. EDT on June 1, the token was still ahead of BCH and TON. LAB’s ascendancy amid a market-wide selloff triggered the liquidation of more than $16.5 million in short bets and $2.6 million in long bets.
In a May 14 article on X regarding its investigation into the project, ZachXBT claimed that 95% of the LAB token supply was likely in the hands of insiders. The online sleuth also claimed that one of the signatories to several of the LAB team’s multisigs was funded by an insider linked on-chain to the manipulation of RIVER. The same insider received over $12 million worth of RIVER tokens on two centralized exchange deposit addresses. ZachXBT also linked the LAB founders to ESE, their previous project, which he said left investors feeling abandoned after the team left.
However, despite ZachXBT’s warning and the grim findings of its investigation, the LAB token did not fall and held strong for much of the second half of May. Starting May 29, LAB rose sharply, helping to push its year-to-date gains to over 12,000%. In reaction to the latest price action, ZachXBT reiterated its past warnings regarding the project.
“Yes, this seems to be the last scam pump for LAB from MM before all hidden supplies are unlocked over the counter/private sale. People are still recommended not to touch these coins,” said ZachXBT in response to user X who asked him about the token.
Another X investigative platform on Monday called LAB’s rise “a game of chicken with insiders.” The platform has also repeated warnings that LAB is scheduled for a token unlock, which invariably leads to value dilution.
“The price may continue to fluctuate on a low float, but you are trading against concentrated holders who can exit at any time. Volatility will be extreme (in) both directions,” Aixbt said in an article on X.
