Bubblemaps Flags LAB as Suspected Manipulation, Urges Centralized Exchanges to Act
Summary
- Bubblemaps said the LAB token was a suspected case of market manipulation and urged centralized exchanges (CEXs) to respond.
- Bubblemaps said more than 95%% of LAB's supply is controlled by insiders, and that some wallets moved about 1.5%% of the total supply to Aster.
- The market sees a growing need for stronger exchange market surveillance as allegations involving small-cap cryptocurrencies, insider trading, and price manipulation continue to emerge.
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On-chain analytics firm Bubblemaps has raised concerns about possible price manipulation in the LAB token and called on centralized exchanges, or CEXs, to respond. The case is drawing renewed attention to insider trading in the small-cap cryptocurrency market.
In a post on its official X account on June 2, Bubblemaps said LAB was "another suspected case of market manipulation" after RAVE, SKYAI and PIPPIN. It added that centralized exchanges "remain silent even when clear manipulation patterns are visible."
Citing analysis by on-chain investigator ZachXBT, Bubblemaps said more than 95% of LAB's supply is estimated to be controlled by insiders.
It also said some wallets moved about 1.5% of the total supply to Aster just before the price surged, with the amount valued at about $300 million.
Bubblemaps said manipulated tokens often show a recurring set of patterns, including large transfers into and out of exchanges, unusual on-chain activity ahead of sharp price swings, and token supply concentrated in a small number of newly created wallets.
The market has recently faced a series of allegations involving insider trading and price manipulation in smaller tokens, adding to pressure on exchanges to strengthen market surveillance.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
