Sharp drop in the price of the LAB token from over $10 to approximately $2 in the last 24 hours (a decline of about 80%) is the result of a combination of several negative factors.

Main reasons for the drop
Large token unlock. In August 2026, approximately 282 million LAB tokens are scheduled to be unlocked (roughly 90% of the current circulating supply). This creates downward pressure on the price, as a sharp increase in available supply may exceed demand. The main risk is that insiders and early investors may begin selling their unlocked tokens.

Low liquidity and high volatility. There are very few LAB tokens in free circulation on the market (about 31% of the total supply), making the price extremely sensitive to sales. At the same time, the token’s fully diluted valuation (FDV) is very high (around $6 billion), while liquidity is extremely low (about $173,000). This creates ideal conditions for manipulative attacks and sharp price swings.

Allegations against insiders. In May 2026, researcher ZachXBT alleged that insiders control approximately 95% of the effective supply of the LAB token. Such allegations heighten doubts about the project's transparency and may trigger selling by large holders.

Forced liquidations in the derivatives market. The sharp price drop could have triggered a cascade of long position liquidations in futures, further amplifying downward pressure on the price.

General downturn in the crypto market. Like many altcoins, LAB is highly dependent on Bitcoin's movements. Against the backdrop of an overall market decline, the token also fell.

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