Important Warning from ZachXBT to Exchanges: “Delist This Altcoin”

ZachXBT, a well-known on-chain researcher in the cryptocurrency world, has made new accusations against the LAB project.

ZachXBT suggested that the LAB token’s market structure is largely insider-controlled, posing a significant risk to small investors. According to the analyst, more than 95% of the project’s total token supply may be controlled by insiders.

A detailed review published by ZachXBT stated that the LAB token’s fully diluted market capitalization (FDV) quickly reached approximately $6 billion, but the structure behind the project was extremely opaque. It was also noted that Vova Sadkov and Mark, presented as the project’s founders, had previously experienced investor dissatisfaction with the Eesee project.

The report alleged that the circulating supply data for the LAB token was complex, the official token distribution was not clearly explained, and there was a strong connection between investors and trading platforms. ZachXBT specifically argued that small investors were not adequately informed, particularly regarding the actual circulating supply.

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One of the most striking allegations is the unilateral change to the lock-in period applied to publicly traded investors. According to ZachXBT, the LAB team initially set the lock-in period at 3 months but later extended it to 9 months. In addition, it was alleged that the project team did not pay marketing expenses, gave preferential treatment to certain influencers and large investors, and pressured them to share promotional content.

Analysis based on on-chain data also alleged that project funds were mixed with personal accounts and that large amounts of funds were transferred directly to investment addresses on trading platforms. ZachXBT argued that the system allowed insiders to conduct token sales without the knowledge of small investors.

The researcher also noted that insider wallets have recently withdrawn hundreds of millions of dollars worth of LAB tokens from trading platforms. ZachXBT stated that these movements resemble methods seen in some projects previously accused of manipulation.

ZachXBT called on trading platforms to conduct a thorough investigation into the LAB project, and if necessary, to freeze the relevant funds or delist the token.

*This is not investment advice.

Continue Reading: Important Warning from ZachXBT to Exchanges: “Delist This Altcoin”