LAB faces ‘pump-and-dump’ fears amid 100 mln token distribution

Crypto scams appear to peak in 2026, with some packaged as legit tokens. A couple of them have been flagged by on-chain investigator ZachXBT, and LAB seems to be one of them. Most of these tokens operate on BNB Smart Chain. LAB distribution is on! As per the latest news from Lookonchain, the developer team distributed about 100 million LAB, worth $480.33 million, across 10 wallets from Bitget. This amount represented more than 32% of the token's circulating supply. The Bitget wallet still holds another 159 million LAB tokens, which the team will likely distribute too. This distribution tactic resembled that of RaveDAO [RAVE], where the memecoin surged just before the distribution, similar to LAB. While these massive CEX outflows signal accumulation in a normal market scenario, for LAB they raise suspicion. The team's wallets control around 98% of the circulating supply, while the more than 19K holders of the token hold only 2%. ZachXBT accuses Bitget of letting scams run behind the scenes Addressing this concern, ZachXBT accused Bitget of allowing scams to run on their trading platform. The on-chain investigator cited that Chinese CEXs had gone unchallenged for years as long as they profited. In a reply to Lookonchain data of the LAB transactions, ZachXBT said, Shawn Liu is the Bitget big boss who allows these scams to operate behind the scenes while Gracy Chen is only the face of it. ZachXBT urged the public to be vocal and increase attacks against Bitget. Multiple Chinese accounts attacked the investigator, labeling him as racist but providing no evidence. ZachXBT told users to be cautious, saying, Your funds are only safe when you are an insider not a retail trader. Will LAB pump and dump like RAVE? On the charts, LAB was starting to emulate the price movement of RAVE. However, it has yet to be confirmed whether it will be another 'pump-and-dump' scheme. LAB surged to an all-time high of $6.63 with the market cap reaching $1.61 billion. After clocking the peak value, LAB lost about 42% of the cap following ZachXBT's comment. Whales were holding over $78 million in long positions, with more than $40 million in unrealized profits. Still, about $15 million in longs were liquidated when the price started going down. These activities suggested potential foul play. However, it was yet to be confirmed, though these were enough signs. Final Summary LAB surges to a new all-time high as the team distributes 100M million LAB tokens across 10 wallets. ZachXBT flags the token as a scam because on-chain data shows that the team holds about 98% of the circulating supply.