RAVE Token Value Plummets 90% in One Day Amid Exchange Investigations

A drastic 90% decline in RAVE token value occurred within 24 hours, triggered by investigations into trading activity by Binance and Bitget, which propelled the token to a $6 billion market capitalization the previous week. CEO of Bitget, Gracy Chen, confirmed the investigation on X, while Binance co-CEO Richard Teng stated the exchange would examine signs of market misconduct. Gate.io was also implicated in the allegations by onchain investigator ZachXBT, who offered a $25,000 bounty for evidence. Following RaveDAO's denial of involvement in the price action, the collapse accelerated rather than stabilized. The project's X thread stated that the team was not responsible for recent price movements but failed to address specific onchain allegations, including the concentration of 90% of the RAVE supply in three Gnosis Safe multi-signature wallets and token transfers to exchanges before the rally. The initial rally saw RAVE surge from $0.25 to $27.33 in nine days, resulting in $44 million in liquidations on Friday. Investigators identified a 'bait and liquidate' pattern, where token transfers to exchanges suggested sell pressure, drawing traders into short positions before prices increased, forcing shorts to cover at unfavorable levels. RaveDAO, a Web3 entertainment platform, reported $3 million in revenue in 2025 and has partnerships with Binance, OKX, Bitget, and Polygon. The project plans to liquidate unlocked tokens to fund operations and marketing, exploring lockup models that tie team incentives to ecosystem growth, but did not commit to a specific mechanism or timeline.