BlockBeats News, May 14th - On-chain sleuth ZachXBT has once again published a lengthy article exposing the LAB project and its founder (@vsadkovv). The LAB token surged to a $6 billion fully diluted valuation (FDV), but its operations remain highly opaque. The team, led by Vova Sadkov and Mark, previously faced backlash over their Eesee project. Currently, LAB's circulating supply data is chaotic, with the official team not clearly disclosing a transparent token distribution. There is a significant overlap between investors and trading platforms, and most crucially, insiders likely control over 95% of the tokens, leaving retail investors unaware of the true circulating supply.

Furthermore, the LAB team unilaterally extended the lock-up period from 3 to 9 months for public sale participants while also owing marketing fees. They provided special treatment to Key Opinion Leaders (KOLs) and whales, requesting posts for promotion. The founders commingled project funds with personal accounts, with a large sum directly deposited into the exchange's wallet address. Insiders can conduct massive sell-offs without the knowledge of retail holders. On-chain data shows insiders recently withdrew hundreds of millions of LAB from the exchange, worth hundreds of millions of dollars, in a manner reminiscent of several previously manipulated projects.

ZachXBT has called on the exchanges to conduct a thorough investigation and delist or freeze the relevant funds. Additionally, ZachXBT expressly stated: this is not a short recommendation. Under such high supply control, shorting instead fuels the fire.