Following allegations of a large short squeeze engineered by insiders, top cryptocurrency exchanges Binance and Bitget have initiated investigations into the trading activity surrounding RaveDAO's RAVE token. The claims, made by on-chain sleuth ZachXBT, suggest that the token's rapid rise was fueled by manipulative practices.
In response, Binance CEO Richard Teng and Bitget CEO Gracy Chen have publicly stated that their respective platforms are looking into the matter. Additionally, ZachXBT has 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 liquidations, with nearly 90% of its supply concentrated in just three wallets at the time. The project, which focuses on Web3 electronic music events and blockchain-based ticketing, reported $3 million in revenue in 2025.
However, its token's market behavior has raised suspicions, with some claiming a 'bait and liquidate' pattern. RaveDAO has denied any involvement in the recent 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.