Following allegations of insider-orchestrated market manipulation, major cryptocurrency exchanges Binance and Bitget have initiated investigations into the trading activity surrounding RaveDAO's RAVE token. The token's value skyrocketed by 4,500% in a week, resulting in over $44 million in liquidated positions.
On-chain analyst ZachXBT claimed that insiders engineered a large short squeeze, which drove the token's rapid rise. Nearly 90% of RAVE's supply was concentrated in just three wallets, and millions of tokens were transferred to exchanges before the price surge.
RaveDAO, a Web3 project focused on electronic music events, has denied any involvement in the recent price action, stating that it is 'not engaged in, nor responsible for, recent price action.' The project plans to liquidate portions of unlocked tokens and is exploring models to tie team incentives to ecosystem growth.