Major cryptocurrency exchanges Binance and Bitget have initiated investigations into the recent trading activity surrounding RaveDAO's RAVE token. This comes after on-chain analyst ZachXBT alleged that insiders orchestrated a large short squeeze, resulting in the token's rapid 4,500% price increase. Bitget's CEO, Gracy Chen, confirmed the exchange is investigating the matter, while Binance's 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. A $10,000 bounty has been offered by ZachXBT for whistleblowers to come forward with evidence about the parties involved. The RAVE token's sudden surge led to over $44 million in bearish positions being liquidated in a single day, with nearly 90% of its supply concentrated in just three Gnosis Safe wallets. Investigators have also flagged large token transfers to exchanges shortly before the price surge began.
RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue in 2025. However, the token's market behavior has raised concerns, with some alleging a 'bait and liquidate' pattern. RaveDAO has denied any involvement in the recent price action, stating that it plans to liquidate portions of unlocked tokens 'when appropriate' and is exploring models to tie team incentives to ecosystem growth.