Onchain investigator ZachXBT published a report on Tuesday alleging that insiders control more than 95% of the supply of LAB, the token tied to an AI trading terminal project with a $6 billion fully diluted valuation. The report claims the project runs at least four separate mechanisms designed to extract value from retail participants.
Insider Control Allegations
According to the report, the vast majority of LAB tokens are held by a small group of insiders, leaving little for public buyers. ZachXBT's analysis suggests the token distribution is heavily skewed, with less than 5% circulating among external holders. The investigator did not name specific individuals but said the concentration raises red flags about market manipulation and fairness.
Value Extraction Mechanisms
The report alleges the project operates at least four simultaneous mechanisms to siphon money from retail users. While the exact nature of each mechanism wasn't detailed in the public summary, ZachXBT described them as systematic tools built into the project's structure. The claim points to a deliberate design intended to benefit insiders at the expense of smaller investors.
A $6 Billion Token
LAB is the native token of a project described as an AI-powered trading terminal. Its fully diluted valuation of $6 billion ranks it among the more valuable crypto assets by that metric, though the actual circulating supply is small. High FDV tokens often face skepticism when insider concentration is high, as it can lead to sell pressure once lockups expire.
Neither the project team nor its backers have publicly responded to the allegations as of press time. The report has sparked discussion on social media, with some traders questioning whether the token's valuation reflects genuine demand or engineered scarcity.
