LAB Reaches $16.23 Despite 95% Supply Concerns as Short Sellers Take Heavy Losses

New All-Time Highs for LAB

On June 1, LAB, the token of an AI trading terminal project, jumped to a new all-time high of $16.23, a more than 100% gain from its price of $7.31 about 24 hours earlier. The spike pushed its weekly gains above 250% and over 580% since May 1, when it traded around $2.15. The token, which briefly pushed LAB’s aggregate market capitalization well past the $6 billion mark, has continued to surge despite serious concerns about the project’s tokenomics and insider-dealing allegations.

Market data showed that LAB’s brief surge past the $16 mark saw it momentarily break into the top 20 coins by market capitalization tracked by Coingecko. Although it ultimately 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 sell-off triggered the liquidation of more than $16.5 million in short bets and $2.6 million in long bets.

In a May 14 post on X regarding his investigation into the project, ZachXBT alleged that 95% of the LAB token supply was likely in the hands of insiders. The online sleuth also claimed that one of the signers for several LAB team multisigs was funded by an insider linked on-chain to RIVER manipulation. The same insider received more than $12 million of RIVER tokens across two centralized exchange deposit addresses. ZachXBT also tied LAB’s founders to ESE, their previous project, which he said left investors feeling abandoned after the team moved on.

However, despite ZachXBT’s warning and the grim findings of his investigation, the LAB token did not tank and held its ground for much of the second half of May. Starting May 29, LAB rose sharply, helping push its year-to-date gains to over 12,000%. Reacting to the latest price action, ZachXBT repeated his past warnings about the project.

“Yes, it seems like last scam pump for LAB from MM before all of the hidden supply unlocks from OTC / private sale. Always recommended people do not touch these coins,” ZachXBT said in reply to an X user asking about the token.

Another investigative platform on X characterized LAB’s surge to a fresh milestone on Monday as “a game of chicken with insiders.” The platform also repeated warnings that LAB is scheduled for a token unlock, which invariably leads to value dilution.

“Price can keep ripping on low float, but you’re trading against concentrated holders who can exit whenever. Volatility will be extreme [in] both directions,” Aixbt said in a post on X.