LAB, the project behind the LAB token, has responded to its sharp token collapse, saying the sell-off was driven by large market participants rather than any issue with the project itself.
In an X post on Wednesday, the team said its product roadmap remains unchanged and that it is monitoring the situation alongside liquidity partners. The statement came after the token lost more than 70% of its value within 24 hours, triggering speculation across the crypto community about a possible exploit or internal misconduct.
LAB price plunged as trading activity surged
LAB fell to $1.34, marking a decline of more than 76% over the previous 24 hours. The drop erased gains made since May and reduced the token’s market capitalization to about $420.7 million.
The sell-off was accompanied by a sharp increase in activity, with 24-hour trading volume climbing 162% to nearly $317 million, according to market data. The token’s fully diluted valuation also declined to roughly $1.39 billion, reflecting the scale of the price correction.
The combination of falling prices and elevated trading volume pointed to heavy selling pressure as investors exited positions during the decline.
Why the token crashed
In a statement posted on X, the LAB team said the price decline was the result of significant selling by large market participants. The project stated that several independent trading firms hold substantial LAB positions but are not affiliated with the team. According to LAB, selling by those external holders contributed to the rapid decline in the token’s price.
The team also rejected speculation that the sell-off resulted from a hack, rug pull, or project-related issue, adding that development plans and the long-term roadmap remain unchanged.
Project says operations continue as investigation into volatility continues
LAB said it is working with liquidity partners to monitor market conditions and assess the ongoing volatility. While the update addressed concerns about the source of the selling pressure, the project did not identify the trading firms involved or disclose how much of the circulating supply they controlled.
The token’s sharp decline has left investors closely watching for further updates as the market assesses whether selling pressure eases in the coming days.
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