Investigations Launched into RAVE Token's 4,500% Price Surge Amid Insider Trading Allegations

Major cryptocurrency exchanges Binance and Bitget have initiated investigations into the trading activity surrounding RaveDAO's RAVE token. This comes after on-chain analyst ZachXBT alleged that insiders orchestrated a large short squeeze, resulting in the token's rapid price increase. Bitget's CEO, Gracy Chen, confirmed the exchange has started investigating the matter, while Binance's CEO, Richard Teng, stated that the platform is also examining the claims and will always investigate signs of market misconduct. Another exchange, Gate, was also implicated in ZachXBT's investigation. ZachXBT has offered a $10,000 bounty to whistleblowers who can provide evidence about the parties involved. The little-known project experienced a significant rally, resulting in over $44 million in RAVE positions being liquidated in a single day, with most of these positions being bearish. The short squeeze highlighted the concentration of RAVE tokens within a small set of wallets, with nearly 90% of its supply held in just three Gnosis Safe wallets at the time. Investigators also flagged token transfers to exchanges shortly before the rally began, with millions of tokens being moved to exchanges before prices started surging. RaveDAO presents itself as a Web3 project focused on electronic music events, offering blockchain-based ticketing and community governance. The project has hosted events across several regions since its inception in 2023 and reported $3 million in revenue in 2025. However, the token's market behavior has been contrasting, with RAVE trading below $0.50 for most of its history before surging in April. The token jumped from about $0.30 to over $6 in a single day and then climbed past $27 before starting to recede. At its peak, the token's market value briefly exceeded $6 billion, placing it among the largest cryptocurrencies by market capitalization before dropping. The token is now down more than 50% from its peak and 30% over the last 24 hours. A separate claim suggests a 'bait and liquidate' pattern, where visible transfers suggest selling pressure, drawing traders into short positions. If those tokens are later withdrawn while prices rise, short sellers may be forced to buy back at higher prices, driving further gains for those on the other side of the trade. These claims remain unproven, but the concentration of supply suggests it's a real possibility. Community reports have linked the project to figures associated with earlier crypto ventures, including ARPA and Bella Protocol, though those connections have not been independently verified. RaveDAO addressed the situation in a social media thread, stating that the team is not engaged in, nor responsible for, the recent price action. The team confirmed it plans to liquidate portions of unlocked tokens 'when appropriate' and is exploring models that tie team incentives to ecosystem growth. RaveDAO stopped short of committing to any specific mechanism or timeline. CoinDesk has reached out to RaveDAO for comments.