Binance and Bitget Launch Probe into RAVE Token's 4,500% Price Surge Amid Insider Manipulation Allegations

Following allegations of insider-orchestrated price manipulation, major cryptocurrency exchanges Binance and Bitget have initiated investigations into the trading activity surrounding RaveDAO's RAVE token. The claims, made by on-chain analyst ZachXBT, suggest that insiders may have engineered a large short squeeze, resulting in the token's rapid price surge. 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 will examine signs of market misconduct. Another exchange, Gate, was also implicated in ZachXBT's investigation. To encourage whistleblowers to come forward, ZachXBT has offered a $10,000 bounty for evidence related to the alleged manipulation. The RAVE token's price surge led to over $44 million in liquidations, with nearly 90% of the token's supply concentrated in just three Gnosis Safe wallets at the time. Furthermore, investigators identified token transfers to exchanges shortly before the price increase, with millions of tokens being moved to exchanges before the surge. RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue in 2025. However, the project's token has exhibited unusual market behavior, trading below $0.50 for most of its history before surging in April. The token's market value briefly exceeded $6 billion before dropping, and it is now down over 50% from its peak. Some have suggested a 'bait and liquidate' pattern, where visible transfers create the illusion of selling pressure, drawing traders into short positions. If those tokens are later withdrawn while prices rise, short sellers may be forced to buy back at higher prices, driving further gains for those on the other side of the trade. 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.