A probe has been launched by major cryptocurrency exchanges Binance and Bitget into the recent trading activity surrounding the RAVE token, following allegations by on-chain analyst ZachXBT that insiders orchestrated a significant short squeeze, leading to the token's rapid price increase. 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 looking into the claims and will examine signs of market misconduct. Another exchange, Gate, was also implicated in ZachXBT's investigation.
ZachXBT has offered a $10,000 bounty to whistleblowers who can provide evidence about the parties involved. The little-known project RaveDAO, which focuses on electronic music events and offers blockchain-based ticketing and community governance, saw its token's value surge by 4,500% over the course of a week, resulting in over $44 million in bearish positions being liquidated in a single day. The short squeeze highlighted the concentration of RAVE tokens within a small set of wallets, with nearly 90% of its supply held in just three Gnosis Safe wallets at the time. Investigators also flagged token transfers to exchanges shortly before the rally began, with millions of tokens being moved to exchanges before prices started surging.
RaveDAO has reported revenue of around $3 million in 2025 and has hosted events across several regions. However, the token's market behavior has been highly volatile, with its value jumping from around $0.30 to over $6 in a single day before receding. At its peak, the token's market value briefly exceeded $6 billion, placing it among the largest cryptocurrencies by market cap 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where visible transfers suggest selling pressure, drawing traders into short positions, only for those tokens to be withdrawn later, forcing short sellers to buy back at higher prices. RaveDAO has addressed the situation in a social media thread, stating that the team is not responsible for the recent price action, but did not address specific on-chain allegations. The project has confirmed that it plans to liquidate portions of unlocked tokens 'when appropriate' and is exploring models that tie team incentives to ecosystem growth.