Following allegations of a potentially orchestrated rally, major cryptocurrency exchanges Binance and Bitget have initiated investigations into the trading activity surrounding RaveDAO's RAVE token. The claims, brought forth by on-chain analyst ZachXBT, suggest that insiders may have deliberately engineered a large short squeeze, resulting in the token's rapid price increase. In response, Bitget's CEO, Gracy Chen, confirmed that the exchange has begun investigating the matter, while Binance's CEO, Richard Teng, stated that the platform is also examining the claims and will take necessary actions to address any signs of market misconduct.
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 three Gnosis Safe wallets at the time. The project, which focuses on Web3 electronic music events and blockchain-based ticketing, reported $3 million in revenue in 2025. The token's market behavior has raised concerns, with some describing a 'bait and liquidate' pattern, where visible transfers suggest selling pressure, drawing traders into short positions.
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.