Lab Token Collapse Triggers Calls For Tighter Regulation In Crypto Market Rising Concerns Of Market Manipulation
These extremes of volatility have led to a near-hysteria in the crypto community, with nearly everyone asking if such price flipping is natural or evidence of strategic suppression. This should be ILLEGAL.$LAB token pumped 500% in just 2 days, adding $260 million to its market cap and liquidating $26.6 million in shorts. It then dumped 84% in just 8 hours, wiping out over $250 million and liquidating $17 million in longs. The controversy revolves around the large percentage of LABs total token supply that still belongs to its development team. The ownership concentration creates an environment in which price movements can be disproportionately swayed, or even created by relatively few insiders. This can result in outsized impacts on the price when even modest buying pressure is able to exert disproportionate upward prices because of the lack of liquidity due to an artificially constricted circulating supply. This phenomenon often creates a mirage of strong demand which attracts further entrants into the market. This tokenomics, critics argue, enables co-ordinated price manipulation as insiders control liquidity and timing. For LAB, these fears are further amplified by the tokens exorbitant rise to all time highs just to crash sharply later on, raising further suspicion that part of its price