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

Major cryptocurrency exchanges, including Binance and Bitget, have initiated investigations into the recent trading activity surrounding RaveDAO's RAVE token. This follows allegations by on-chain analyst ZachXBT that insiders orchestrated a significant short squeeze, resulting in the token's rapid price increase. Bitget's CEO, Gracy Chen, confirmed the exchange's investigation, while Binance CEO Richard Teng stated that the platform would examine signs of market misconduct. ZachXBT has offered a $10,000 bounty for whistleblowers to come forward with evidence about the parties involved. The token's price surge led to over $44 million in liquidations, with nearly 90% of its supply concentrated in three Gnosis Safe wallets. Investigators have also flagged large-scale token transfers to exchanges before the price increase. RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue in 2025. However, the token's market behavior has raised concerns, with some claiming a 'bait and liquidate' pattern. RaveDAO has denied any involvement in the recent price action and plans to liquidate unlocked tokens when appropriate, exploring models that tie team incentives to ecosystem growth.