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 alleged that insiders manipulated the market, resulting in a significant short squeeze that drove the token's rapid price increase. Bitget's CEO, Gracy Chen, confirmed the investigation, 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.
Another exchange, Gate, was also implicated in ZachXBT's investigation. A $10,000 bounty has been offered to whistleblowers who can provide evidence about the parties involved. The RAVE token experienced a massive 4,500% surge over the course of a week, resulting in over $44 million in liquidations, primarily from bearish positions. However, the short squeeze highlighted the token's supply concentration, with nearly 90% held in just three Gnosis Safe wallets.
Additionally, millions of tokens were transferred to exchanges before the price surge began. RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue in 2025. The project's token, RAVE, had traded below $0.50 for most of its history before surging to over $6 in a single day and later exceeding $27.
At its peak, the token's market value briefly surpassed $6 billion before dropping. The token is currently down over 50% from its peak and 30% over the last 24 hours.
Claims of a 'bait and liquidate' pattern have also emerged, 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. The project is exploring models that tie team incentives to ecosystem growth but has not committed to a specific mechanism or timeline.