Major 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 manipulated the market, resulting in a massive short squeeze. The token's price skyrocketed by 4,500% in a week, leading to the liquidation of over $44 million in bearish positions. Notably, nearly 90% of the token's supply was held in just three Gnosis Safe wallets, and millions of tokens were transferred to exchanges before the price surge began.
ZachXBT has offered a $10,000 bounty for information about the parties involved. The RaveDAO project, which focuses on blockchain-based ticketing and community governance for electronic music events, has denied any involvement in the price manipulation. The incident highlights the risks of market misconduct in the cryptocurrency space and the need for increased transparency and regulation.