LAB token sinks 99% from ATH: 3 reasons behind the collapse
Large token transfers painted a worrying picture for LAB holders.
LAB [LAB] plunged more than 36% over the past 24 hours as token unlocks, insider transfers, and exchange activity intensified selling pressure on the token. The sharp decline added weight to concerns raised by on-chain investigator ZachXBT, who has repeatedly questioned the project’s legitimacy.
Despite the sell-off, LAB continues to hold a sizeable share of market liquidity, allowing it to remain listed on major exchanges.
On-chain data pointed to three key factors behind the token’s collapse, which has now erased roughly 99% of its value from its all-time high (ATH).
Why is LAB price falling so hard?
The 14th of July marked LAB’s first major scheduled investor unlock, although reports differed on the exact amount released. That uncertainty added to concerns over the project’s transparency, one of the issues ZachXBT previously highlighted.
Vesting data showed that roughly 31.48 million LAB entered linear unlocks on the day. The additional supply increased the risk of fresh selling pressure.
That unlock was only part of the story.
Arkham data also showed insiders moving large amounts of LAB to exchanges. One wallet transferred more than 40 million LAB to Bitget. The same wallet was also seen moving SKYAI tokens.
On top of that, ZachXBT reported that another insider deposited 18.4 million LAB into Aster DEX [ASTER] over the previous two days. The address still held another 81.5 million LAB after the transfers, leaving traders concerned about additional supply entering the market.
Exchange wallets added another layer of selling pressure.
KuCoin transferred 11 million LAB from its vault wallet across three transactions. Two transfers involved four million tokens each, while the third moved three million tokens.
Interestingly, the final three million LAB moved to an external wallet instead of another KuCoin address. That suggested not every transfer immediately represented exchange distribution.
Meanwhile, derivatives added fresh downside pressure.
Fresh sell walls formed above the current price, consistently outweighing buy orders. The largest liquidity clusters appeared around $0.58 and between $0.32 and $0.33.
That combination of token unlocks, insider activity, exchange transfers, and derivatives positioning drove LAB’s sharp decline. It also left traders asking whether the token could stabilize.
LAB price projections amid 99% crash
LAB fell another 36% over the last 24 hours and remained under heavy pressure.
The Chaikin Money Flow (CMF) dropped sharply throughout July, reinforcing signs of sustained capital outflows.
At the same time, Open Interest climbed to roughly $60 million even as the price declined. That divergence suggested fresh positions continued entering the market despite the sell-off, increasing the likelihood of speculative short activity.
Even so, LAB’s outlook still depends on liquidity.
If buying demand continues to weaken while new supply enters the market, downside pressure could persist. A sustained recovery would likely require stronger liquidity and renewed market confidence.
Final Summary
- LAB crashed more than 36% in 24 hours, extending its decline to roughly 99% from its all-time high as investor unlocks, insider transfers, and exchange activity fueled selling pressure.
- LAB traded below key support levels. Unless fresh liquidity returns, the token could remain under sustained selling pressure.
