Major cryptocurrency exchanges Binance and Bitget have initiated investigations into the sudden and significant price increase of RaveDAO's RAVE token, following allegations of insider involvement in a short squeeze. The claims, made by on-chain analyst ZachXBT, suggest that certain individuals orchestrated the token's rapid rise, resulting in over $44 million in liquidations.
The token's price surged 4,500% in a week, with nearly 90% of its supply concentrated in three Gnosis Safe wallets. Millions of tokens were transferred to exchanges before the price increase, further fueling suspicions of market manipulation.
RaveDAO, a Web3 project focused on electronic music events, has denied any involvement in the price surge, stating that it is not responsible for the recent price action. The project has announced plans to explore new token lock models, but the investigation is ongoing, with a $10,000 bounty offered for any information that may aid in the probe.