LAB, the token that blockchain analytics firm BubbleMaps warned holders about, has crashed 99% from its all-time high. The combined value of an early presale group's holdings has plummeted from approximately $1 billion to roughly $6.8 million.

Why Did LAB Crash?

The decline began in early June, just days after LAB reached its all-time high of $27.22. On June 4, BubbleMaps warned holders that the token's on-chain patterns were set to get "ugly." At that time, presale participants held more than $1 billion in unrealized paper profits that remained locked and inaccessible. Concentrated, locked positions of this scale are a recurring red flag in token launches, where presale structures can leave a small group of early buyers with disproportionate exposure before public markets have established price discovery.

By July 3, LAB had already fallen 72% from its June peak to around $7.20. BubbleMaps tracked 313 wallets that had participated in the presale on Legion. Those buyers had collectively invested $1,428,359. On July 3, their combined holdings were valued at $519,517,144.

By August 12, that figure had collapsed to just $6,768,048.

On July 8, the token dropped approximately 85% in a single day to below $2, forcing leveraged traders into liquidations on Binance's perpetual futures market. Days later, on July 12, a wallet that on-chain investigator ZachXBT linked to the LAB team sold $18.3 million worth of tokens through the exchange Aster, driving the price from roughly $1.20 to $0.55.

LAB is currently trading near $0.12, representing a 99.6% decline from its all-time high. Its market capitalization stands at approximately $52.6 million, with a circulating supply of roughly 455 million tokens against a maximum supply of 1 billion.

Who Controls the LAB Supply?

In May 2026, ZachXBT alleged that insiders controlled more than 95% of the token's supply and had artificially inflated the price through coordinated market-making on centralized exchanges. Independent on-chain investigators like ZachXBT and BubbleMaps have become central to transparency in crypto markets, where projects often operate with limited regulatory disclosure compared to traditional securities.

His report detailed private loans routed through the project's British Virgin Islands entity, The Lab Management Ltd., with founder Vova Sadkov listed as director. One contract specified a 7.5% monthly interest rate and allowed the borrower to repay in LAB "at market price."

ZachXBT's investigation also revealed that the company had offered tokens to key opinion leaders at discounts as steep as 80%, with token releases tied to promotional social media posts. KOL promotional arrangements—where influencers receive discounted tokens in exchange for social media coverage—are widespread in token launches but have drawn increasing scrutiny for creating undisclosed conflicts of interest. He called on Binance, Bitget, and Gate.io to freeze insider profits or delist LAB.

None of the three exchanges has publicly acted on that demand. LAB launched in October 2025, and the project team has not issued a public response to the allegations.

As locked presale tokens become tradable, holders who have watched their positions deteriorate over two months will finally have the opportunity to sell. Monthly unlocks of 16.23 million LAB are scheduled from August 14 through December 14, 2026. In token markets, scheduled unlock events increase circulating supply and can intensify selling pressure as early holders gain liquidity. Furthermore, 70.8% of the total token supply is classified as "Untracked," meaning these tokens could unlock at any time.