Following allegations of a coordinated price manipulation, major cryptocurrency exchanges Binance and Bitget have initiated investigations into the trading activities surrounding RaveDAO's RAVE token. The claims, made by on-chain analyst ZachXBT, suggest that insiders deliberately engineered a short squeeze, resulting in the token's rapid appreciation. Bitget's CEO, Gracy Chen, confirmed the exchange's investigation, while Binance's CEO, Richard Teng, stated that the platform would examine signs of market misconduct.
Another exchange, Gate, was also implicated in ZachXBT's investigation. To encourage whistleblowers to come forward, ZachXBT has offered a $10,000 bounty for evidence related to the alleged manipulation. The RAVE token's price surge led to the liquidation of over $44 million in short positions, with nearly 90% of the token's supply concentrated in just three Gnosis Safe wallets at the time.
Token transfers to exchanges before the price increase have also raised suspicions. RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue in 2025. However, the token's market behavior has been inconsistent with its underlying fundamentals, with its price surging from $0.30 to over $6 in a single day before receding. At its peak, the token's market value briefly exceeded $6 billion, placing it among the largest cryptocurrencies by market capitalization.
A 'bait and liquidate' pattern has been alleged, where visible transfers are used to create the illusion of 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 If those tokens are later withdrawn while prices rise, short sellers may be forced to buy back at higher prices, driving further gains for those on the other side of the trade. While these claims remain unproven, the concentration of supply suggests it's a possibility.
RaveDAO has denied any involvement in the price manipulation, stating that the team is not responsible for the recent price action. The project has announced plans to explore 'price-triggered or performance-triggered locks' to tie team incentives to ecosystem growth but has not committed to a specific mechanism or timeline.