Cryptocurrency exchanges Binance and Bitget have initiated investigations into the recent trading activity surrounding the RAVE token, following allegations by on-chain analyst ZachXBT that insiders orchestrated a large short squeeze, resulting in the token's rapid appreciation. 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 RAVE token experienced a significant rally, with over $44 million in short positions being liquidated in a single day, following a 4,500% increase in value over the course of a week.
However, the short squeeze highlighted the concentration of RAVE tokens within a small set of wallets, with nearly 90% of its supply held in just three Gnosis Safe wallets at the time. Investigators also flagged token transfers to exchanges shortly before the rally began, with millions of tokens being moved to exchanges before prices started surging. RaveDAO, the project behind the RAVE token, presents itself as a Web3 project focused on electronic music events, offering blockchain-based ticketing and community governance. The project has reported $3 million in revenue in 2025 and has hosted events across several regions.
The token's market behavior has been volatile, trading below $0.50 for most of its history before surging in April. It 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 is now down more than 50% from its peak and 30% over the last 24 hours. A separate claim centers on a 'bait and liquidate' pattern, where visible transfers suggest 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 If those tokens are later withdrawn while prices rise, short sellers may be forced to buy back at higher prices, driving further gains for those on the other side of the trade.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, recent price action.' The team did not address specific on-chain allegations but confirmed plans to liquidate portions of unlocked tokens 'when appropriate.' RaveDAO is exploring models that tie team incentives to ecosystem growth, including price-triggered or performance-triggered locks, but has not committed to any specific mechanism or timeline.