LAB token, the cryptocurrency tied to an AI trading terminal project, shot to a new all-time high of $16.23 on June 1. The move pushed its year-to-date gain past 12,000% and marked a more than 100% increase from a prior level. But the rally has drawn sharp attention as allegations of insider dealing and questions about the token's supply structure—specifically that 95% is held by a small group—surface among traders.
Price Surge and Short Seller Pain
The jump to $16.23 came after weeks of steady gains. Short sellers betting against LAB suffered heavy losses as the price accelerated. Data from trading platforms showed a cascade of liquidations as the token broke through resistance levels. The project behind LAB, which describes itself as an AI-powered trading terminal, has not commented on the price action.
Inside the Insider Dealing Allegations
Unnamed sources on crypto forums and social media have accused insiders of benefiting from advance knowledge of the token's listing on a major exchange or a product launch. No formal complaint has been filed, but the claims have spread quickly. The project's team has not denied the allegations publicly, nor have they confirmed or addressed them. Investigators are not currently known to be involved, but watchdogs have been known to look into unusual price moves after the fact.
Tokenomics Under the Microscope
Alongside the insider dealing chatter, a separate concern has gained traction: that 95% of LAB's total supply is concentrated among a small number of wallets. Such concentration raises the risk of price manipulation and can leave retail holders exposed. The project originally disclosed a tokenomics model that allocated a large portion to the team and early investors, but the exact breakdown hasn't been updated recently. Without a public audit or a clear distribution report, confidence remains fragile.
The combination of a massive price run, heavy short-seller losses, and unresolved questions about supply and insider conduct leaves the token in a precarious spot. Traders now wait for any statement from the project's developers or a possible regulatory inquiry. Until then, the rally's sustainability is an open question.
