On-chain investigator ZachXBT has escalated allegations against the LAB token project, claiming that insiders likely control more than 95% of the token’s supply following a rally that pushed its fully diluted valuation (FDV) to roughly $6 billion. The claims, which have not been independently verified, center on opaque private loans, over-the-counter (OTC) deals, changes to vesting schedules, and coordination with market makers.
Allegations of Concentrated Token Ownership
ZachXBT alleges that a small group of insiders controls the vast majority of LAB’s circulating and locked supply. Such concentration can affect market dynamics by limiting genuine float, potentially amplifying price swings and impacting liquidity. The investigator did not publish a complete breakdown alongside the claims in the material reviewed, but asserted that on-chain evidence indicates highly concentrated holdings.
Claims of Opaque Deals and Vesting Changes
The accusations also reference undisclosed or opaque private loans, OTC transactions, and altered vesting terms that may advantage select counterparties. Additionally, the project was accused of coordinating with market makers in ways that could influence trading activity. The details and documentation for these claims were not included in the summary available at press time.
Rally to Multi-Billion-Dollar Valuation
According to the investigator, the allegations follow a sharp rally that lifted LAB’s FDV to approximately $6 billion. FDV reflects the theoretical value of a token if its total supply were in circulation at the current market price. While FDV can signal market expectations for future growth, high valuations with limited free float can heighten volatility and complicate price discovery.
Why Ownership Concentration Matters
- Market liquidity: Large insider holdings may reduce the freely tradable supply, affecting spreads and depth.
- Price discovery: Thin float can lead to outsized price reactions to relatively small orders.
- Governance and control: Concentrated ownership can centralize decision-making power over protocol or treasury mechanisms, if applicable.
The LAB team did not immediately provide public documentation addressing these specific allegations in the material reviewed. This is a developing story, and further on-chain disclosures or official statements could clarify the project’s token distribution, vesting, and market arrangements.