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

Major cryptocurrency exchanges Binance and Bitget have initiated investigations into the recent trading activity surrounding RaveDAO's RAVE token. This move comes after on-chain analyst ZachXBT alleged that insiders orchestrated a significant short squeeze, resulting in the token's rapid price increase. Bitget's CEO, Gracy Chen, confirmed that the exchange is looking into the matter, while Binance's CEO, Richard Teng, stated that the platform will examine signs of market misconduct. Another exchange, Gate, was also implicated in ZachXBT's investigation. A $10,000 bounty has been offered by ZachXBT for whistleblowers who can provide evidence about the parties involved. The RAVE token experienced a 4,500% rally over the course of a week, leading to the liquidation of over $44 million in bearish positions. However, the token's price surge has raised concerns due to the concentration of its supply in a small set of wallets. Nearly 90% of the token's supply was held in three Gnosis Safe wallets at the time of the rally. Furthermore, millions of tokens were transferred to exchanges shortly before the price surge began. RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue in 2025. The project's token, RAVE, traded below $0.50 for most of its history before surging in April. The token's market value briefly exceeded $6 billion at its peak, making it one of the largest cryptocurrencies by market capitalization. However, the token has since dropped by over 50% from its peak and 30% in the last 24 hours. Allegations of a 'bait and liquidate' pattern have also emerged, suggesting that visible transfers may be used to create the illusion of 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 a specific mechanism or timeline.