TechFlow News, May 14: According to an on-chain analyst ZachXBT (@zachxbt), the market capitalization of $LAB recently surged to a $6 billion FDV—but serious issues lie beneath this growth:
- Opaque token distribution: $LAB was co-founded by Vova Sadkov and Mark. Their prior project, Eesee ($ESE), drew criticism from investors. Platforms including CoinGecko, RootData, and CoinMarketCap provide conflicting data on $LAB’s token distribution, with over 95% of the supply controlled by a small number of parties.
- Unilateral amendment of terms: The team unilaterally extended the lock-up period for Legion’s public sale from three months to nine months. Additionally, multiple creators have reported unpaid marketing collaboration fees—delinquent for several months without any response from the team.
- Non-transparent private loans: LAB privately offers loan agreements with a monthly interest rate of 7.5% and a term of six months. The borrower is BVI shell company The Lab Management Ltd., signed by Vova Sadkov in his capacity as director. In case of default, repayment is to be made in $LAB tokens at “market price.”
- On-chain fund anomalies: The borrower’s wallet (0xf09c) is the same address as LAB’s public buyback wallet and shares on-chain linkages with another borrowing address (0x3185) associated with the Wildcat platform. Related funds appear to have flowed into Vova’s personal exchange account.
ZachXBT notes that $LAB exemplifies a typical “pump-and-dump” pattern currently targeting retail investors in the market.
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