Following allegations of a manipulated price surge, major cryptocurrency exchanges Binance and Bitget have initiated investigations into the trading activity surrounding RaveDAO's RAVE token. The claims suggest that insiders orchestrated a large short squeeze, driving the token's rapid price increase.
The investigation was sparked by on-chain analyst ZachXBT, who has offered a $10,000 bounty for information about the parties involved. The token's price surged 4,500% over a week, resulting in over $44 million in liquidated positions, with nearly 90% of its supply concentrated in just three wallets.
Millions of tokens were transferred to exchanges before the price increase, raising suspicions of market misconduct. RaveDAO, a Web3 project focused on electronic music events, has denied any involvement in the price manipulation, stating that it is not responsible for the recent price action and plans to liquidate portions of unlocked tokens when appropriate.