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

Following allegations by on-chain analyst ZachXBT that insiders orchestrated a large short squeeze, resulting in a rapid price surge of the RAVE token, major cryptocurrency exchanges Binance and Bitget have initiated investigations. Bitget's CEO, Gracy Chen, confirmed the exchange has started investigating the matter, while Binance's CEO, Richard Teng, stated that the platform is examining the claims and will always investigate signs of 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 RAVE token's price surged by 4,500% over the course of a week, resulting in over $44 million in liquidations, mostly from bearish positions. Notably, nearly 90% of the token's supply was concentrated in three Gnosis Safe wallets, and millions of tokens were transferred to exchanges before the price increase. RaveDAO, the project behind the token, describes itself as a Web3 project focused on electronic music events, offering blockchain-based ticketing and community governance. Despite its relatively small footprint, with $3 million in revenue in 2025, the token's market behavior has been significant, with its market value briefly exceeding $6 billion before dropping. The token's price has since receded, down over 50% from its peak and 30% in the last 24 hours. Claims have emerged of a 'bait and liquidate' pattern, where visible transfers suggest selling pressure, drawing traders into short positions, only to later withdraw the tokens and force short sellers to buy back at higher prices. While these claims remain unproven, the concentration of supply suggests it is a possibility. 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 any specific mechanism or timeline.