ZachXBT has been tracking large suspicious fund flows on-chain for a long time, and this analysis of the LAB entity continues his ongoing supervision of the project's opaque private placement allocations and potential selling pressure.

In terms of capital flow, this entity obtained LAB through large allocations from the team, then operated in batches through exchanges and remained dormant before concentrating transfers, strategically reflecting the use of information and chip advantages for high-level cashing out, with Aster being a related or receiving party.

Similar to previous cases where concentrated selling by meme/emerging token projects or whales led to sharp declines, LAB is currently in a selling shock phase under high supply concentration, exposing the hidden dangers of early allocation mechanisms.

Essentially, this represents a transfer of pricing power: the high concentration of private placements allows a single entity to dominate price direction, with the mechanism lacking transparent lock-up and allocation arrangements, enabling a few holders to control pricing power, damaging retail investor confidence and accelerating capital outflow, while also pressuring platforms to enhance monitoring of large transactions and governance requirements for project parties.

ABAB News · Law of Cognition

The more concentrated the private placement chips, the more vulnerable the price is to actions by a single entity.
A sudden transfer after a long dormancy is often a signal for whales to cash out, rather than a positive sign.
The cost of opaque allocations is ultimately borne by the secondary market buyers.