Investigations Launched into RAVE Token's 4,500% Price Surge Amid Allegations of Insider Involvement

Cryptocurrency exchanges Binance and Bitget have initiated investigations into the recent trading activity surrounding RaveDAO's RAVE token. This move follows allegations by on-chain analyst ZachXBT, who claims that insiders orchestrated a significant short squeeze, resulting in the token's rapid price increase. Bitget CEO Gracy Chen confirmed the exchange's investigation, while Binance CEO Richard Teng stated that the platform is examining the claims and will always investigate signs of market misconduct. Another exchange, Gate, was also implicated in ZachXBT's investigation. A $10,000 bounty has been offered by ZachXBT for whistleblowers to come forward with evidence about the parties involved. The project's token experienced a remarkable 4,500% rally over a week, leading to the liquidation of over $44 million in RAVE positions, mostly bearish, in a single day. Notably, nearly 90% of RAVE tokens were concentrated in just three Gnosis Safe wallets at the time, and millions of tokens were transferred to exchanges shortly before the price surge began. RaveDAO, a Web3 project focused on electronic music events, offers blockchain-based ticketing and community governance, with origins tracing back to a 2023 afterparty in Istanbul. The project reported approximately $3 million in revenue in 2025. The token's market behavior, however, has been marked by significant volatility, trading below $0.50 for most of its history before surging in April to over $6 in a single day, and then climbing past $27 before receding. At its peak, the token's market value briefly exceeded $6 billion, placing it among the largest cryptocurrencies by market capitalization before dropping. The token is now down more than 50% from its peak and 30% over the last 24 hours. Claims have also emerged of a 'bait and liquidate' pattern, where visible transfers suggest selling pressure, drawing traders into short positions, only to have those tokens withdrawn while prices rise, forcing short sellers to buy back at higher prices. RaveDAO has addressed the situation, stating that the team is not responsible for the recent price action, but did not address specific on-chain allegations, including supply concentration or the millions transferred to exchanges ahead of the pump.