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

Major cryptocurrency exchanges Binance and Bitget have initiated investigations into the recent trading activity surrounding RaveDAO's RAVE token, following allegations by on-chain analyst ZachXBT that insiders orchestrated a significant short squeeze, leading to the token's rapid price surge. Bitget's CEO, Gracy Chen, confirmed the exchange has started investigating the matter, while Binance CEO Richard Teng announced that the platform is also examining the claims and will take necessary actions to address any market misconduct. Another exchange, Gate, was also implicated in ZachXBT's investigation. ZachXBT has offered a $10,000 bounty to whistleblowers who can provide evidence about the parties involved. The relatively unknown project experienced a massive rally, resulting in over $44 million in RAVE positions being liquidated in a single day, with most of these positions being bearish. The short squeeze highlighted the concentration of RAVE tokens within a small set of wallets, with nearly 90% of the supply held in just three Gnosis Safe wallets at the time. Investigators also flagged significant token transfers to exchanges shortly before the price surge began, with millions of tokens being moved to exchanges before the prices started rising. RaveDAO describes itself as a Web3 project focused on electronic music events, offering blockchain-based ticketing and community governance. The project has hosted events across several regions since its origins in a 2023 afterparty in Istanbul and reported approximately $3 million in revenue in 2025. However, the token's market behavior has been at odds with its footprint, trading below $0.50 for most of its history before surging in April. The token's price jumped from around $0.30 to over $6 in a single day, then climbed past $27 before starting to recede. At its peak, the token's market value briefly exceeded $6 billion, placing it among the largest cryptocurrencies by market capitalization before dropping. The token has since fallen by more than 50% from its peak and 30% over the last 24 hours. A separate claim suggests a 'bait and liquidate' pattern, where visible transfers indicate 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 If those tokens are later withdrawn while prices rise, short sellers may be forced to buy back at higher prices, driving further gains for those on the other side of the trade. These claims remain unproven, but the concentration of supply suggests it's a real possibility. Community reports have linked the project to figures associated with earlier crypto ventures, including ARPA and Bella Protocol, though those connections have not been independently verified. RaveDAO has addressed the situation in a social media thread, stating that the team is not engaged in, nor responsible for, the recent price action. The project confirmed it plans to liquidate portions of unlocked tokens 'when appropriate' and is exploring models that tie team incentives to ecosystem growth, including price-triggered or performance-triggered locks. However, RaveDAO stopped short of committing to any specific mechanism or timeline.