Popular supplement brand Insane Labz, well known in the UFC and bodybuilding communities, is facing serious allegations after public blockchain data and reported communications suggest the company may have orchestrated a coordinated pump and dump scheme using their own memecoin, all while loyal customers were among those buying in.
In June 2024, Insane Labs launched a memecoin called Labz (LABZ). The pitch centered on tying the coin to their existing sports and supplement brand, promising “partnerships, collaboration with fitness related businesses, supplement companies, vetted celebrities, and online influencers to promote the use of Insane Labz token.”
The company described a vision of the token being used in real-world scenarios within social media, content marketing, and influencer collaborations, with the goal of fostering a fitness community through events, contests, and networking.
The token’s market value surged from an initial $3 million up to a peak of $15 million, largely driven by activity in a Telegram group where the company and its community built hype around the coin. But the hype was far from organic.
According to blockchain investigator reporting, fake celebrity appearances played a significant role in inflating the price. An impersonator of UFC personality Hasbulla appeared in the Telegram group, followed by individuals posing as UFC president Dana White and MMA star Nate Diaz.
The owner of Insane Labz allegedly posted a screenshot implying he had a FaceTime call with Dana White, and a fake giveaway of four UFC tickets was announced, causing the token to rise as much as 17%.
When the impersonators came forward, having not been fully paid for their work, they released the chats and confirmed their identities. Blockchain records reportedly show that 15 SOL was sent to the impersonators’ wallets, traceable back to the same wallets associated with Insane Labs.
As the truth surfaced, the token collapsed, falling over 74% in two weeks. Shortly after, the Telegram group was deleted. Insane Labz cited d*ath threats as the reason.
The coin is now essentially worthless, with a reported circulating supply of 49 million tokens and virtually no trading activity in nearly a month.
If a company is willing to manipulate a cryptocurrency market, questions naturally arise about what other corners may be cut. The supplement industry in the United States remains largely unregulated, and independent testing has repeatedly shown that many products do not contain what their labels claim, with dosing inaccuracies or missing compounds appearing in a significant portion of tested products.
The coin technically remains available to purchase, but with no meaningful market activity.
