I have been tracking something that I think every LAB holder needs to know about.

On July 13, I watched an entity withdraw 17.9 million LAB tokens worth approximately $7.2 million from Bitget and route them straight to a KuCoin deposit address. Within minutes of those tokens hitting KuCoin, the selling began. LAB lost more than a third of its value in a single session, and I believe what I have found explains exactly why.

What I noticed first was the speed. Minutes after the 17.9 million LAB arrived at the KuCoin deposit address, 5 million of those tokens were pulled out and transferred to a separate wallet and the entity went straight to market selling through Aster's spot trading platform. I watched LAB drop from $0.34 to $0.22, roughly 35%, in a window that gave most holders no time to react.

I don't think this is someone taking routine profits. When I see market sells of this size compressed into minutes, I think it looks like someone trying to exit a large position before the market has time to absorb it. The retail holders on the other side of those trades are left holding an asset that is suddenly worth a third less, while the seller got out at prices nobody else will see again for a while. That is the part that bothers me most about how this played out.

I also want to flag something that I think people are underestimating right now. The remaining LAB from that initial 17.9 million withdrawal is still sitting in KuCoin wallets. That means I don't believe this selling pressure is finished. Until those tokens move somewhere other than an exchange sell order, I will keep treating this situation as ongoing and unresolved.

This is where I think the story gets genuinely serious. When I traced this entity back further, I found that it received over 196 million LAB directly from the LAB team in April. I want to sit with that number for a moment, 196 million tokens, sent from the project team to a single entity, months before that entity started routing large tranches to exchanges and market selling into the open market.

I think that April allocation is the context that explains everything else I have been tracking. A position that size gives whoever holds it enormous influence over the token's price. I don't know yet whether it was a team allocation, an advisory grant, a partnership deal, or something else entirely, the on-chain data shows the transfer happened, but it doesn't tell me the terms behind it. What I can say is that I have now watched those tokens start moving to exchanges in a coordinated pattern, and I think the LAB community deserves to know that.

I feel strongly that the LAB team needs to answer for this publicly. If I received 196 million tokens from a project team and later sold aggressively enough to crash the price by 35%, I would expect that project's community to demand an explanation. I think LAB holders should be asking the same questions right now, and I have not seen the team address any of it yet.

This is my fourth update on this investigation, and I have to say, I did not expect the entity to adjust this quickly after I started publishing. After my earlier reports went out, I noticed the entity transferred another 30 million LAB worth approximately $8.3 million from a Bitget hot wallet to a completely different KuCoin deposit address. I believe that move was a direct response to my reporting, and I think it was designed to break the visible funding trail.

I want to be clear about what I think happened here. Changing your wallet routing after an on-chain investigator starts publicly tracing your transactions is not something people do for operational convenience. I suspect this entity is reading my updates and adjusting its approach specifically to make my job harder. The old chain, Bitget to address A, got too visible, so now it is Bitget hot wallet to address B, with different intermediate wallets inserted to obscure the source.

What I will say is that changing the path does not change what I already found. Those earlier transactions are on-chain permanently, and I have them documented. What I am watching now is where the remaining 30 million LAB in that second KuCoin wallet goes next, and I will update when it moves.

I think a lot of LAB holders watched the July 13 price drop happen and had no idea what caused it. Without the on-chain context I have been building across these updates, it just looks like a bad day in crypto. I feel that is exactly the problem, these moves are designed to look like ordinary market volatility from the outside, but when I follow the wallets, I can see the mechanics behind them clearly.

What worries me about the structural situation is this: an entity sitting on tens of millions of tokens, received directly from a project team, that is now actively routing them to exchanges in size, represents a supply overhang that does not just go away. Every time I see another tranche move to a deposit address, I know there is a real possibility that more selling follows. I think that is the reality LAB holders are dealing with right now whether they realize it or not.

I will keep watching this. The 30 million LAB sitting in that second KuCoin wallet is still unresolved, the LAB team has still not publicly explained the April allocation, and I have no reason yet to think the selling is finished. If you are holding LAB or thinking about it, I think you should be following this investigation closely and waiting to see how the team responds before making any decisions.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on X @nulltxnews

Discover more crypto insights and analysis