Following allegations of a large-scale short squeeze, two major cryptocurrency exchanges, Binance and Bitget, have initiated investigations into the trading activity surrounding RaveDAO's RAVE token. The claims, made by on-chain analyst ZachXBT, suggest that insiders orchestrated the token's rapid 4,500% rise.
In response, Bitget's CEO, Gracy Chen, confirmed that the exchange has started investigating the matter, while Binance's CEO, Richard Teng, stated that the platform will examine signs of market misconduct. ZachXBT has also offered a $10,000 bounty to whistleblowers who can provide evidence about the parties involved. The RAVE token's price surge led to over $44 million in bearish positions being liquidated in a single day, with nearly 90% of the token's supply concentrated in just three Gnosis Safe wallets. Investigators have flagged token transfers to exchanges shortly before the rally began, with millions of tokens being moved to exchanges before prices started surging.
RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue in 2025 and has hosted events across several regions. However, the token's market behavior has raised concerns, with some claiming a 'bait and liquidate' pattern, where visible transfers suggest selling pressure, drawing traders into short positions. RaveDAO has addressed the situation, stating that the team is not responsible for the recent price action and plans to liquidate portions of unlocked tokens 'when appropriate.' The project is exploring models that tie team incentives to ecosystem growth but has not committed to any specific mechanism or timeline.