Cryptocurrency exchanges Binance and Bitget have initiated an investigation into the recent trading activity surrounding RaveDAO's RAVE token, following allegations by on-chain analyst ZachXBT that insiders orchestrated a large short squeeze, resulting in the token's rapid price increase. Bitget CEO Gracy Chen confirmed the exchange's investigation, while Binance CEO Richard Teng stated that the platform is also examining the claims and will take action if market misconduct is found. ZachXBT has offered a $10,000 bounty for whistleblowers to come forward with evidence.
The investigation highlights the concentration of RAVE tokens in a small set of wallets, with nearly 90% of the supply held in three Gnosis Safe wallets, and millions of tokens transferred to exchanges before the price surge. RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue in 2025, but the token's market behavior has raised concerns, with a 4,500% rally over a week and a market value that briefly exceeded $6 billion. The token has since dropped over 50% from its peak, with some claiming a 'bait and liquidate' pattern, where visible transfers suggest selling pressure, drawing traders into short positions.
RaveDAO has denied any involvement in the price action, stating that it plans to liquidate portions of unlocked tokens 'when appropriate' and is exploring models to tie team incentives to ecosystem growth.