Crypto Investigator Raises Red Flags Around This Token’s $6B Valuation

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Crypto investigator ZachXBT has accused the team behind the LAB token of operating a tightly controlled token ecosystem built around hidden OTC deals and insider-controlled supply. In a lengthy thread on X, he claimed insiders likely control more than 95% of LAB’s circulating supply despite the token reaching a fully diluted valuation above $6 billion. The allegations come as LAB continues drawing retail attention after a massive rally across major centralized exchanges.

Hidden supply and private deals raise red flags

According to ZachXBT’s May 14 thread, LAB lacks transparent token distribution data, with CoinGecko, CoinMarketCap, and RootData all reporting different circulating supply figures. He also noted that the project’s own documentation allegedly provides no clear allocation breakdown.

The investigator tied LAB founders Vova Sadkov and Mark X to a series of private OTC deals and loan agreements that allegedly gave select buyers discounted access to tokens under hidden vesting schedules.

One screenshot shared in the thread showed private investment offers including loans charging up to 7.5% monthly interest, alongside OTC deals offering discounts as high as 60% and even 80%.

Another image showed a KOL Capital pitch offering LAB at an 80% discount and requiring influencers to post promotional content before token unlocks.

ZachXBT argued these arrangements created hidden unlock schedules invisible to retail traders, and insiders and market makers allegedly coordinated liquidity behind the scenes.

Wallet links and vesting changes deepen concerns

The thread also focused heavily on onchain connections between LAB-linked wallets, exchange deposits, and entities tied to the founders.

One chart published by ZachXBT mapped flows between alleged insider wallets, exchange deposit addresses, and accounts linked to Sadkov’s ENS identity and NFT activity.

He further claimed a borrower wallet from a private LAB loan contract was later used for public buybacks and linked to a Wildcat lending market associated with LAB.

The investigation also highlighted backlash from investors after LAB allegedly extended vesting schedules from a three-month cliff to a nine-month lockup period.

At press time on May 15, the LAB token was changing hands at the price of $4.11, plunging 24.4% in the last 24 hours and declining 9.1% across the week, whereas its accumulated gains in the past 30 days have dropped to 833.3%, per the latest data.

Several crypto users publicly accused the project of abandoning prior commitments and delaying payouts tied to marketing campaigns and token rewards.

Despite the allegations, ZachXBT warned traders against aggressively shorting LAB, arguing that concentrated insider supply could allow further price manipulation against bearish positions.

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