Binance and Bitget Launch Probe into RAVE Token's 4,500% Price Surge Amid Insider Trading Allegations

Cryptocurrency exchanges Binance and Bitget have initiated an investigation into the recent trading activity surrounding RaveDAO's RAVE token. This move comes after on-chain analyst ZachXBT raised concerns that insiders may have manipulated the market, resulting in a significant short squeeze that drove the token's price up rapidly. Binance CEO Richard Teng and Bitget CEO Gracy Chen have both confirmed that their respective platforms are looking into the matter, with Chen stating that the exchange has started investigating the claims. ZachXBT has also offered a $10,000 reward to anyone who can provide evidence related to the alleged insider trading. The RAVE token saw a massive 4,500% increase in value over the course of a week, resulting in over $44 million in liquidations, primarily from bearish positions. Notably, nearly 90% of the token's supply was held in just three Gnosis Safe wallets at the time, and millions of tokens were transferred to exchanges shortly before the price surge began. RaveDAO, a Web3 project focused on electronic music events and blockchain-based ticketing, 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 capitalization briefly exceeded $6 billion, placing it among the largest cryptocurrencies by market value. The token has since dropped by over 50% from its peak and 30% in the last 24 hours. Some have alleged a 'bait and liquidate' scheme, 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 If those tokens are later withdrawn while prices rise, short sellers may be forced to buy back at higher prices, further driving up the token's value. While these claims remain unverified, the concentration of token supply suggests that such a scenario is possible. 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 mechanisms to tie team incentives to ecosystem growth but has not committed to a specific plan or timeline.