Moonrock Capital Founder Labels LAB a Scam with $10.5B FDV Amid Bitget Allegations

Simon Dedic, founder of the crypto venture capital firm Moonrock Capital, has publicly accused the cryptocurrency project LAB of being a 'laughably obvious scam,' alleging that major centralized exchanges are complicit in its market manipulation. Dedic's comments, shared via social media, have reignited concerns about the role of trading platforms in policing dubious token listings. According to Dedic, the price chart of LAB reveals clear signs of artificial inflation orchestrated by market makers. He argues that the token's value is being pumped to attract retail investors, who then face liquidity extraction once the scheme unwinds. 'What's more disappointing is that major exchanges like Gate.io, KuCoin, and Bitget are also condoning and abetting this behavior for short-term profit,' Dedic stated. He emphasized that such coordinated manipulation would be prohibitively expensive without fee-exempt accounts and direct cooperation from the exchanges themselves.

Despite the allegations, LAB's price more than doubled last week. Its fully diluted valuation (FDV) surged from approximately $8.6 billion to roughly $10.5 billion. Data compiled by Woofun AI shows this FDV ranks LAB as the 12th largest cryptocurrency by that metric. For perspective, the market capitalization of South Korean construction giant Hyundai E&C is currently around 15.69 trillion won ($11.8 billion), while LAB's FDV stands at about 15.88 trillion won ($10.5 billion). This comparison highlights the extraordinary valuation assigned to a token facing serious fraud accusations.

Dedic's criticism extends beyond LAB itself to the broader ecosystem. He stressed that exchanges assisting scam projects harms the entire industry and demonstrates a lack of morality. The incident raises questions about the due diligence processes at centralized exchanges, which often list tokens with high trading volumes but questionable fundamentals. For retail investors, the case underscores the risks of chasing momentum in tokens with inflated valuations and opaque market-making arrangements. Woofun AI notes that the specific naming of exchanges adds weight to ongoing debates about the need for stricter listing standards.

The LAB controversy serves as a stark reminder of the persistent challenges in cryptocurrency market integrity. While Dedic's allegations are serious, they remain unproven in a legal context.

However, the detailed nature of his claims and the specific naming of exchanges add weight to ongoing debates about the need for stricter listing standards and real-time surveillance of trading activity. Investors are advised to exercise caution and conduct independent research before engaging with tokens exhibiting similar price patterns. Woofun AI analysis suggests that without enhanced regulatory oversight, such valuation anomalies may continue to distort market perceptions.