LAB, the native token of multi-chain trading platform LAB Trade, crashed 80% from just over $7 to $1.25 on Wednesday in under 24 hours. This followed a Tuesday sell-off from nearly $17, erasing nearly 90% of the token's value in 48 hours. The LAB Trade team attributed the decline to significant selling pressure from large market participants and independent trading firms holding substantial LAB positions not affiliated with the team. Market capitalization collapsed from over $5 billion on Tuesday morning to $390 million by 3:30 p.m. EST on Wednesday. The crash mirrors similar collapses in tokens including RAVE, RIVER, and SIREN, each experiencing rapid rises followed by near-instantaneous erasures that sparked pump-and-dump allegations.
LAB Trade Team Attributes Crash to Large Market Participants
The LAB Trade team addressed the collapse on X, stating the product roadmap and long-term focus remain unchanged despite the market activity. The team said on X: "While today's market activity is disappointing, our product roadmap and long-term focus remain unchanged. We're seeing significant selling pressure from large market participants. Several independent trading firms also hold substantial LAB positions that are not affiliated with our team. We're working closely with our liquidity partners and continue to monitor market conditions."
![LAB Token Crashes 80% to $1.25 as $5B Market Cap Vanishes in 48 Hours]()
ZachXBT Criticizes Centralized Exchanges for Inaction
On-chain detective ZachXBT, who flagged suspicious insider loans and market-maker coordination in May, criticized Binance, Bitget, and Gate for failing to protect retail investors. ZachXBT said on X: "Disappointing to see how no action was taken by Binance, Bitget, and Gate earlier to prevent it. If CEXs cared, profits from the accounts manipulating the price would be distributed to users at a minimum. Unlocks for investors were scheduled to begin later this month, however, multiple late vesting changes occurred in the past." ZachXBT reiterated previous warnings that insiders have controlled the entire circulating supply, allowing market makers to orchestrate extreme price manipulation on major exchanges. ZachXBT advised the community to avoid trading LAB under any circumstances.
LAB Crash Follows Pattern of Similar Token Collapses
LAB joins tokens including RAVE, RIVER, and SIREN that experienced meteoric rises followed by near-instantaneous erasures. These projects sparked pump-and-dump allegations against their respective teams and distribution networks. Unlocks for LAB investors are scheduled to begin later in July 2026.
FAQ
What caused the LAB token crash on Wednesday?
The LAB Trade team attributed the 80% crash from just over $7 to $1.25 on Wednesday to significant selling pressure from large market participants and independent trading firms holding substantial LAB positions not affiliated with the team.
How much market capitalization did LAB lose in 48 hours?
LAB's market capitalization collapsed from over $5 billion on Tuesday morning to $390 million by 3:30 p.m. EST on Wednesday, representing a loss of nearly 90% of the token's value in 48 hours.
What did ZachXBT say about centralized exchanges regarding LAB?
ZachXBT criticized Binance, Bitget, and Gate for failing to take action to prevent the LAB crash, stating that if centralized exchanges cared, profits from accounts manipulating the price would be distributed to users at a minimum.
