$LAB token, which the blockchain analytics firm BubbleMaps warned holders about, has fallen 99%.

The token’s combined value of an early presale group has dropped from about $1 billion to roughly $6.8 million.

Why did $LAB crash?

The $LAB crash started in early June, just days after it hit its all-time high of $27.22. BubbleMaps first warned holders on June 4 that the token’s on-chain patterns would get “ugly.” At that point, presale participants were sitting on more than $1 billion in unrealized paper profits that they could not touch.

By July 3, $LAB had already fallen 72% from its June high to about $7.20. BubbleMaps tracked the same 313 wallets that participated in the presale on Legion. Those buyers put in $1,428,359. On July 3, their combined holdings were valued at $519,517,144.

By August 12, that figure had fallen to just $6,768,048.

Cryptopolitan reported that on July 8, the token dropped about 85% in a day to under $2, forcing leveraged traders to sell on Binance’s perpetual futures market. Days later, on July 12, a wallet that ZachXBT tied to the $LAB team sold $18.3 million of tokens through the exchange Aster, dragging the price from roughly $1.20 to $0.55.

The token is now trading near $0.12, representing a 99.6% drop from its all-time high. The market capitalization currently sits at about $52.6 million, with a circulating supply of roughly 455 million tokens against a 1 billion maximum.

Who controls the supply of $LAB?

In May 2026, ZachXBT alleged that insiders held more than 95% of the token’s supply and had inflated the price through coordinated market-making on centralized exchanges.

His report described private loans routed through the project’s British Virgin Islands entity, The Lab Management Ltd., with founder Vova Sadkov signing as director. One contract charged 7.5% a month and let the borrower repay in $LAB “at market price.”

His investigation also detailed offers from the company to key opinion leaders at discounts as steep as 80%, with token releases tied to promotional posts. ZachXBT called on Binance, Bitget, and Gate.io to freeze insider profits or delist $LAB.

None of the three has publicly acted on that demand. $LAB launched in October 2025, and its team has not issued a public rebuttal to the allegations.

When locked presale tokens become tradable, holders who have watched their positions shrink for two months finally get a chance to sell.

Monthly unlocks of 16.23 million $LAB are scheduled from August 14 through December 14, 2026. Additionally, 70.8% of the token supply is marked as “Untracked,” meaning these tokens may unlock at any time.