Following allegations of insider manipulation, major cryptocurrency exchanges Binance and Bitget have initiated investigations into the trading activities surrounding the RAVE token, which is part of the RaveDAO project. The token's price surged by 4,500% in a short period, resulting in the liquidation of over $44 million in bearish positions.
The sudden rally has raised concerns about potential market misconduct, with nearly 90% of the token's supply being concentrated in just three wallets and significant token transfers to exchanges occurring before the price increase. RaveDAO, a Web3 project focused on electronic music events, has denied any involvement in the price manipulation, stating that it is not responsible for the recent price action. The project has announced plans to explore locking mechanisms that tie team incentives to ecosystem growth but has not committed to a specific timeline or mechanism.