Major cryptocurrency exchanges, Binance and Bitget, have launched investigations into the recent trading activity of RaveDAO's RAVE token, following allegations by on-chain analyst ZachXBT that insiders orchestrated a substantial short squeeze, leading to the token's rapid appreciation. Bitget's CEO, Gracy Chen, confirmed the exchange's investigation, while Binance's CEO, Richard Teng, stated that the platform would examine signs of market misconduct.
ZachXBT has offered a $10,000 bounty for whistleblowers to share evidence about the parties involved. The project, which focuses on Web3 electronic music events and blockchain-based ticketing, saw its token surge 4,500% in a week, resulting in over $44 million in liquidations. Nearly 90% of the token's supply was concentrated in three Gnosis Safe wallets, and millions of tokens were transferred to exchanges before the price surge.
RaveDAO has denied any involvement in the recent price action and is exploring measures to tie team incentives to ecosystem growth.