Renowned on-chain detective ZachXBT has publicly accused the team behind the LAB token and the LABtrade_ platform of orchestrating systematic market manipulation. The allegations center on the project's founder, known as vsadkovv, who is accused of leveraging concentrated token holdings to execute weekly "pump and dump" schemes on centralized exchanges (CEXs). These activities, according to the investigator, have resulted in significant financial losses for retail investors and continue to damage the broader reputation of the cryptocurrency industry.
Mechanism of Alleged Market Manipulation
The investigation highlights a pattern of behavior where the LAB team allegedly exploited their control over a high percentage of the circulating supply. ZachXBT claims that the group targeted platforms such as Bitget to conduct artificial price spikes followed by rapid liquidations. These maneuvers reportedly occurred with near-weekly frequency, creating a volatile environment that favored insiders at the expense of unsuspecting market participants.
- Concentrated Supply: Insiders allegedly held excessive amounts of LAB tokens to control market liquidity.
- CEX Targeting: Manipulative trades were primarily focused on centralized venues like Bitget.
- Frequency: The detective noted that these cycles of price inflation and dumping were recurring events.
Lack of Transparency and Industry Impact
Despite attempts to resolve the matter discreetly, ZachXBT stated that his private inquiries to the LAB team remained unanswered. He noted a disconnect between the founder's public persona and the project's alleged activities, pointing out that vsadkovv often posted "philosophical musings" on social media while the accounts were involved in suspicious trading patterns. This lack of accountability is cited as a primary driver for public disclosure.
Such behavior is further eroding the overall credibility of the crypto industry,
The detective emphasized that when project leads engage in deceptive practices, it reinforces negative stereotypes about the digital asset space, making it harder for legitimate decentralized finance (DeFi) projects to gain trust.
The allegations against the LAB team underscore the ongoing challenges regarding investor protection on centralized exchanges. While the accused parties have yet to issue a formal rebuttal to the evidence presented by ZachXBT, the case serves as a reminder for traders to exercise caution when dealing with tokens characterized by low liquidity and high insider concentration. As of May 2026, the community continues to monitor on-chain movements associated with LABtrade_ wallets for further signs of irregular activity.
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For educational purposes only. Nothing here constitutes financial or investment advice. Crypto markets are highly volatile — always DYOR before making any decisions.
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