Bubblemaps Flags LAB as Suspected Price Manipulation, Urges Exchange Action
Summary
- Bubblemaps said the LAB token was another suspected case of price manipulation following RAVE, SKYAI, and PIPPIN.
- 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 is seeing a growing need for stronger market surveillance by centralized exchanges as allegations of insider trading and price manipulation continue to surface around small-cap tokens.
Forecast Trend Report by Period
On-chain analytics firm Bubblemaps raised suspicions of price manipulation in the LAB token and called for action from centralized exchanges, or CEXs. The issue has drawn market attention to insider trading in small-cap cryptocurrencies.
On June 2, Bubblemaps wrote on its official X account that LAB was "another suspected case of price manipulation" following RAVE, SKYAI and PIPPIN. It added that centralized exchanges were remaining silent even when clear manipulation patterns were 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 a sharp price surge, with the amount valued at about $300 million.
Bubblemaps identified repeated patterns in tokens suspected of manipulation, including large deposits and withdrawals on exchanges, unusual on-chain activity just before sharp price swings, and supply concentrated in a small number of newly created wallets.
The market is increasingly focused on the need for stronger surveillance by centralized exchanges as allegations of insider trading and price manipulation continue to emerge in small-cap tokens.
