LAB token has plunged 99.6 percent from its all-time high, posting what amounts to a collapse. The estimated value of holdings by presale participants once exceeded $1 billion but has shrunk to about $6.76 million. Concerns are growing about further selling pressure, with allegations over insider supply and market-making followed by plans for large-scale token unlocks.

Blockchain media outlet Cryptopolitan reported on Tuesday that LAB token is trading at about $0.12. That is down about 99.6 percent from its record high of $27.22 set in June.

The plunge has also hit presale participants. The estimated value of holdings in 313 wallets that joined the Legion presale and were tracked by blockchain analytics platform Bubblemap once exceeded $1 billion, but fell to $6,768,048 as of Tuesday.

Those wallets invested a total of $1,428,359 initially. As recently as July 3, the estimated value of their LAB holdings stood at $519,517,144. In just over a month, that value has effectively vanished.

LAB's decline gathered pace in early June. Bubblemap warned holders on June 4, saying abnormal signs had appeared in on-chain flows. At the time, presale participants had secured more than $1 billion in unrealised gains but could not immediately sell their tokens. LAB then slid about 72 percent from its June high to around $7.20 by July 3.

Losses widened further in July. On July 8, LAB fell about 85 percent in a single day to below $2. On Binance's perpetual futures market, the sharp drop triggered a wave of leveraged position liquidations.

A few days later, on July 12, crypto investigator ZachXBT sold about $18.3 million worth of LAB through Aster from a wallet he identified as linked to the LAB team. LAB then fell further to $0.55 from about $1.20.

Questions have also been raised about the token's supply structure. ZachXBT claimed in May that insiders held more than 95 percent of total LAB supply and inflated the price through organised market-making on centralised exchanges.

During the investigation, private loan agreements involving The Lab Management, the project's British Virgin Islands entity, were also mentioned. Founder Boba Sadkov (보바 사드코프) was reported to have signed the contracts as a director of the entity. Some loan agreements carried monthly interest of 7.5 percent and were designed to allow borrowers to repay in LAB based on market prices.

ZachXBT also claimed the project provided LAB to key opinion leaders at discounts of up to 80 percent and linked the token distribution timing to promotional posts. He demanded that Binance, Bitget and Gate.io freeze insider profits and delist LAB, but the exchanges have not made any public response so far.

The LAB team was also reported not to have publicly rebutted the allegations. The market is focusing on planned token unlocks as a potential driver of further declines. Once locked presale tokens become tradable, investors who have endured paper losses would be able to sell their holdings for the first time. Presale tokens are set to be unlocked in stages at 16.23 million LAB per month from Aug. 14 to Dec. 14.

Uncertainty also remains over additional supply. Of total LAB supply, 70.8 percent is currently marked as 'untraceable', making it unclear when more could reach the market. LAB's market value is about $52.6 million and the circulating supply is about 455 million tokens. The maximum supply is said to be 1 billion tokens.

Ultimately, LAB's future price path is expected to hinge on the planned presale unlocks, whether untraceable tokens actually enter circulation, and how disputes over insider holdings and supply control are resolved. Market caution is likely to persist for some time, given that additional supply pressure remains even after a plunge of more than 99 percent.