Key Highlights
- LAB permanently burned 1% of its total token supply following a sharp price collapse.
- The team described the burn as the first step in a broader recovery and product roadmap.
- On-chain investigator ZachXBT renewed criticism of exchanges over LAB’s listing and due diligence.
The LAB project, an AI-powered multi-chain trading platform, has permanently burned 1% of its total $LAB supply. The move comes a day after the token suffered an approximately 85% crash, wiping out billions in market value and triggering widespread criticism from on-chain investigators and investors alike.
In an X post on Thursday, the team confirmed that the burn transaction had been completed on BscScan. It described the supply reduction as “the beginning of a broader initiative to strengthen LAB” while reiterating that its priorities remain focused on improving the product, expanding adoption, and executing its roadmap.
At the time of this writing, the token is trading at $1.01, reflecting a 90.11% decline over the past week and 16.01% in the past 24 hours, according to CoinMarketCap.
Token crash triggered scrutiny
The sell-off saw $LAB plunge from roughly $14 to under $2 within 24 hours on July 8. According to CoinMarketCap, the token traded around $2.41 after falling more than 85% on the day, with its market capitalization dropping to approximately $754 million. At its recent peak, the fully diluted valuation had approached $14 billion. Trading volume surged over 340% amid the sell-off, reflecting intense panic and deleveraging across the market.
On-chain investigator ZachXBT had publicly raised concerns about LAB for months. He also criticized centralized exchanges that listed the token, arguing they failed to conduct adequate due diligence or implement necessary safeguards. The collapse left many retail investors with losses and raised questions about listing standards and project transparency in the broader crypto market.
Market and community reaction
The token burn has drawn mixed reactions across the crypto community. Some supporters view it as an initial step toward rebuilding confidence and reducing the circulating supply.
However, critics argue that a 1% burn is relatively modest given the scale of the collapse and question whether it sufficiently addresses underlying concerns that led to the sell-off.
The incident has also renewed debate over rapid exchange listings, speculative trading, and project transparency. Sharp price swings can expose retail investors to significant losses, particularly when newly listed tokens experience elevated volatility.
For LAB, attention is likely to remain on whether the team can deliver on its roadmap and improve transparency in the coming months. While the token burn reduces supply, rebuilding confidence will depend on product execution and clearer communication.
Investors advised to avoid FOMO purchases
The price collapse and subsequent 1% token burn offer little immediate comfort to holders. Users who bought near the peak have suffered unrealized losses, with the token now trading at just a fraction of its previous value. While the burn slightly reduces total supply, it does little to restore faith after such a rapid crash.
Investors are advised to exercise extreme caution, as volatility remains high and recovery is uncertain. The incident serves as a stark reminder of the risks in speculative tokens, highlighting the importance of thorough research and avoiding FOMO-driven purchases, especially following the team’s efforts to stabilize the project.
Also Read: LAB Adds Robinhood Chain Support Amid Rising Network Activity
