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 to drive the token's rapid price increase. Bitget's CEO, Gracy Chen, confirmed that the exchange has started investigating the matter, while Binance CEO Richard Teng stated that the platform is also examining the claims and will take action if signs of market misconduct are found.
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 little-known RAVE token experienced a significant surge, resulting in over $44 million in liquidations, primarily from bearish positions, in a single day. This followed a 4,500% price increase over the course of a week. However, the token's price surge has raised concerns due to the concentration of its supply, with nearly 90% held in just three Gnosis Safe wallets at the time.
Investigators have also flagged significant token transfers to exchanges shortly before the price surge began, with millions of tokens being moved to exchanges before the price increase. RaveDAO, the project behind the RAVE token, describes itself as a Web3 project focused on electronic music events, offering blockchain-based ticketing and community governance. The project has hosted events across several regions since its inception in 2023 and reported $3 million in revenue in 2025. Despite this, the token's market behavior has been unusual, trading below $0.50 for most of its history before surging in April.
The token's price jumped from around $0.30 to over $6 in a single day, then climbed past $27 before starting to decline. 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 has since fallen by over 50% from its peak and 30% in the last 24 hours. A separate claim suggests a 'bait and liquidate' pattern, where visible transfers create the illusion of 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 If those tokens are later withdrawn while prices rise, short sellers may be forced to buy back at higher prices, driving further gains for those on the other side of the trade.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 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 responsible for the recent price action.
The project confirmed plans to liquidate portions of unlocked tokens 'when appropriate' and is exploring models that tie team incentives to ecosystem growth, but stopped short of committing to any specific mechanism or timeline.