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, raised by on-chain analyst ZachXBT, suggest that insiders may have orchestrated a short squeeze, resulting in the token's rapid appreciation.
In response, Bitget's CEO, Gracy Chen, confirmed that the exchange has started 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 potential market misconduct. Additionally, ZachXBT has offered a $10,000 bounty for whistleblowers to come forward with 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 being held in just three Gnosis Safe wallets at the time. The investigation also uncovered large-scale token transfers to exchanges prior to the price increase. RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue in 2025, but the token's market behavior has raised concerns.
The token's price jumped from $0.30 to over $6 in a single day, reaching a peak market value of $6 billion before receding. The token is currently down over 50% from its peak and 30% in the last 24 hours. Claims of a 'bait and liquidate' pattern have also emerged, suggesting that visible transfers may be used to lure traders into short positions, only to withdraw the tokens later and drive prices higher. RaveDAO has addressed the situation, stating that the team is not responsible for the recent price action, but the project's connections to earlier crypto ventures have raised further questions.