Key Takeaways:
LAB token lost more than 60% of its value in seven days, wiping out billions in market value as concerns over insider-controlled supply and looming token unlocks triggered a cascade of derivatives liquidations.
LAB fell 60% to $7.50 by July 3, erasing gains from its June peak as insider ownership allegations and heavy derivatives liquidations fueled panic selling.
"Insiders controlled more than 95% of the token supply, with opaque OTC agreements and changing vesting schedules," on-chain investigator ZachXBT alleged, according to community posts cited by crypto.news. The LAB team has disputed or not publicly accepted many of the claims.
Open interest dropped 23% to $130.39 million as leveraged long positions unwound, while funding rates turned negative across perpetual futures markets, indicating bearish control. The MACD histogram expanded deeper into negative territory, accelerating the move toward the $7.50 support area.
The first token unlock arrives in two weeks, per Bubblemaps data, with holders still sitting on roughly $500 million in unrealized gains — creating further downside risk if selling pressure resumes. LAB must hold above the $7.50-$7.65 support zone to avoid a test of the $6.70 Bollinger Band lower bound.
The collapse marks a dramatic reversal for a token that rallied more than 2,500% in January 2026 and reached an all-time high near $27 in early June, even as controversy swirled. The mobile application launch in early May gave the project a product catalyst that sustained momentum despite earlier allegations of insider supply and potential exchange manipulation concerns.
$500 million in unrealized gains hang over the market
The scheduled token unlock compounds the technical damage. With approximately $500 million in paper gains still held by early investors, according to Bubblemaps, the two-week countdown to unlock creates a known overhang that may suppress any recovery attempt. The 4-hour chart shows LAB trading at $7.50 inside Bollinger Bands, with the EMA50 at $13.03 and EMA200 at $12.22 defining clear overhead resistance. The RSI at 32.52 sits in neutral territory, while the MACD has registered a bullish golden cross at -1.56 that could support a short-term relief bounce before unlock pressure intensifies.
The broader crypto market backdrop has added to the headwinds. Late June and early July saw investors broadly reduce exposure to riskier digital assets as global central banks maintained restrictive monetary policies, thinning liquidity across the altcoin market and leaving few buyers willing to absorb selling from whales and early investors.
LAB's reported institutional backers include Animoca Brands, OKX, Lemniscap, GSR, Amber Group, Mirana Ventures, Gate, and KuCoin, though the project has not publicly addressed the distribution concerns raised by on-chain analysts.
This article is for informational purposes only and does not constitute investment advice.
