Cryptocurrency exchanges Binance and Bitget have launched investigations into the recent trading activity surrounding RaveDAO's RAVE token. This move comes after on-chain analyst ZachXBT alleged 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, who stated that the platform would examine signs of market misconduct. Another exchange, Gate, was also implicated in ZachXBT's investigation. A $10,000 bounty has been offered to whistleblowers who can provide evidence about the parties involved.
The RAVE token experienced a significant surge, with its price rising by 4,500% over the course of a week. However, this rally was accompanied by a high concentration of tokens within a small set of wallets, with nearly 90% of its supply held in just three Gnosis Safe wallets. Furthermore, 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. The project's token, RAVE, had traded below $0.50 for most of its history before surging in April.
Its market value briefly exceeded $6 billion, making it one of the largest cryptocurrencies by market capitalization. The token's price has since receded, with its value down by over 50% from its peak. Allegations of a 'bait and liquidate' pattern have also emerged, suggesting that visible transfers may have been used to create selling pressure and lure traders into short positions.
While these claims remain unproven, the concentration of supply raises the possibility of such a scenario. Community reports have linked RaveDAO to individuals associated with earlier crypto ventures, although these connections have not been independently verified. RaveDAO has addressed the situation, stating that the team is not responsible for the recent price action. The project has confirmed plans to liquidate portions of unlocked tokens 'when appropriate' and is exploring models that tie team incentives to ecosystem growth.