Following allegations of insider trading, major cryptocurrency exchanges Binance and Bitget have initiated investigations into the recent trading activity surrounding RaveDAO's RAVE token. The claims, made by on-chain analyst ZachXBT, suggest that insiders orchestrated a large short squeeze, resulting in the token's rapid price increase. The investigation was confirmed by Bitget's CEO, Gracy Chen, and Binance's CEO, Richard Teng, with the latter stating that the platform will examine signs of market misconduct. Additionally, ZachXBT has offered a $10,000 bounty to whistleblowers who can provide evidence about the parties involved.
The RAVE token's price surge led to over $44 million in liquidations, with nearly 90% of its supply concentrated in three Gnosis Safe wallets at the time. The project, which focuses on Web3 electronic music events, has reported $3 million in revenue in 2025.
However, its token's market behavior has raised concerns, with some describing a 'bait and liquidate' pattern. RaveDAO has addressed the situation, stating that it is not responsible for the recent price action and plans to liquidate portions of unlocked tokens when appropriate.