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

A thorough investigation has been launched by prominent cryptocurrency exchanges, Binance and Bitget, into the recent trading activity surrounding RaveDAO's RAVE token. This move comes after allegations surfaced suggesting that insiders may have orchestrated a large short squeeze, resulting in the token's rapid price escalation. Crypto exchange Bitget's CEO, Gracy Chen, confirmed that the exchange has begun investigating the matter, while Binance CEO Richard Teng also announced that the platform is looking into the claims and will examine signs of market misconduct. Another exchange, Gate, has also been implicated in the allegations made by onchain sleuth ZachXBT. ZachXBT has offered a $10,000 bounty to whistleblowers who can provide evidence about the parties involved. The relatively unknown project experienced a significant rally, resulting in over $44 million in RAVE positions being liquidated in a single day, with most of these positions being bearish. The liquidations followed a staggering 4,500% rally over the course of a week. However, the short squeeze highlighted the concentration of RAVE tokens within a small set of wallets, with nearly 90% of its supply concentrated in just three Gnosis Safe wallets at the time. Investigators have also flagged significant token transfers to exchanges shortly before the rally began, with millions of tokens being moved to exchanges before prices started surging. RaveDAO presents itself as a Web3 project focused on electronic music events, offering blockchain-based ticketing and community governance. The project has its origins in a 2023 afterparty in Istanbul and has since hosted events across several regions, reporting approximately $3 million in revenue in 2025. This footprint contrasts with the token's market behavior, as RAVE traded below $0.50 for most of its history before surging in April. It jumped from about $0.30 to over $6 in a single day, then climbed past $27 before starting to recede. 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. A separate claim centers on what some describe as a 'bait and liquidate' pattern, where visible transfers suggest 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. These claims remain unproven, but the concentration of supply suggests it's a real possibility. Community reports have also linked the project to figures associated with earlier crypto ventures, including ARPA and Bella Protocol, though those connections have not been independently verified. None of the individuals named in these reports has responded publicly. RaveDAO addressed the situation in a social media thread, stating that the team is 'not engaged in, nor responsible for, recent price action.' In the thread, RaveDAO did not address specific onchain allegations, including supply concentration or the millions transferred to exchanges ahead of the pump, but confirmed it does plan to liquidate portions of unlocked tokens 'when appropriate.' RaveDAO said it was 'exploring appropriate models, including price-triggered or performance-triggered locks, that tie team incentives to ecosystem growth.' It stopped short of committing to any specific mechanism or timeline. CoinDesk has reached out to RaveDAO for comments.