Binance and Bitget Launch Probe into RAVE Token's 4,500% Price Surge Amid Insider Trading Allegations

Following allegations of insider-orchestrated market manipulation, two prominent cryptocurrency exchanges, Binance and Bitget, have begun investigating the unusual trading activity surrounding RaveDAO's RAVE token. The claims, brought forth by on-chain analyst ZachXBT, suggest that insiders deliberately engineered a large short squeeze, resulting in the token's rapid price increase. In response, Bitget's CEO, Gracy Chen, confirmed that the exchange has started investigating the matter, while Binance's CEO, Richard Teng, publicly stated that the platform is also examining the claims and will take action to address any signs of market misconduct. Another exchange, Gate, was also implicated in ZachXBT's investigation. To encourage whistleblowers to come forward, ZachXBT has offered a $10,000 bounty for private information regarding the parties involved. The RAVE token's price surge led to the liquidation of over $44 million in short positions, with the token's value increasing by 4,500% over the course of a week. However, the sudden price movement also highlighted the concentration of RAVE tokens within a small number of wallets, with nearly 90% of the supply held in three Gnosis Safe wallets at the time. Furthermore, investigators noted that millions of tokens were transferred to exchanges shortly before the price surge began. RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue in 2025 and hosted events across several regions. The project's token, however, has exhibited unusual market behavior, trading below $0.50 for most of its history before surging in April. The token's market value briefly exceeded $6 billion at its peak before declining. A separate claim suggests a 'bait and liquidate' pattern, where visible transfers are used to create the illusion of selling pressure, drawing traders into short positions. If those tokens are later withdrawn while prices rise, short sellers may be forced to buy back at higher prices, driving further gains for those on the other side of the trade. Although these claims remain unproven, the concentration of supply suggests that this scenario is a possibility. Community reports have linked the project to individuals associated with earlier crypto ventures, but 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. The project is exploring models that tie team incentives to ecosystem growth but has not committed to a specific mechanism or timeline.