Major cryptocurrency exchanges Binance and Bitget have initiated investigations into the recent trading activity surrounding RaveDAO's RAVE token, following allegations by on-chain analyst ZachXBT that insiders orchestrated a substantial short squeeze, resulting in the token's rapid price increase. Bitget's CEO, Gracy Chen, confirmed the exchange's investigation, while Binance CEO Richard Teng stated that the platform is also examining the claims and will always investigate signs of market misconduct. ZachXBT has offered a $10,000 bounty to whistleblowers who can provide evidence about the parties involved.
The investigation highlights the concentration of RAVE tokens, with nearly 90% of the supply held in just three Gnosis Safe wallets, and the transfer of millions of tokens to exchanges before the price surge. RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue in 2025, but its token's market behavior has raised concerns. The token's price surged from $0.30 to over $6 in a single day, reaching a market value of over $6 billion before receding. The token is now down over 50% from its peak and 30% in the last 24 hours.
Allegations of a 'bait and liquidate' pattern, where visible transfers suggest selling pressure, drawing traders into short positions, have also surfaced. 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.