Investigations Launched into RAVE Token's 4,500% Price Surge Amid Claims of Insider Involvement

Major cryptocurrency exchanges Binance and Bitget have initiated investigations into the trading activity surrounding RaveDAO's RAVE token. This comes after on-chain analyst ZachXBT alleged that insiders orchestrated a significant short squeeze, leading to the token's rapid price increase. Bitget's CEO, Gracy Chen, confirmed that the exchange has started investigating the matter, while Binance's CEO, Richard Teng, stated that the platform is also looking into the claims and will examine signs of market misconduct. Another exchange, Gate, was also implicated in ZachXBT's investigation. A $10,000 bounty has been offered by ZachXBT for whistleblowers to come forward with evidence about the parties involved. The project's token experienced a significant rally, resulting in over $44 million in RAVE positions being liquidated in a single day, following a 4,500% surge over the course of a week. Nearly 90% of the token's supply was concentrated in just three Gnosis Safe wallets at the time, and millions of tokens were transferred to exchanges shortly before the price surge began. RaveDAO, a Web3 project focused on electronic music events, has hosted several events across various regions since its inception in 2023 and reported $3 million in revenue in 2025. However, the token's market behavior has been marked by volatility, with its price surging from $0.30 to over $6 in a single day before receding. The token's market value briefly exceeded $6 billion at its peak, placing it among the largest cryptocurrencies by market capitalization. A claim has also been made about a 'bait and liquidate' pattern, where visible transfers suggest selling pressure, drawing traders into short positions, which can be exploited by those on the other side of the trade. Community reports have linked the project to figures associated with earlier crypto ventures, although these connections have not been independently verified. 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.