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 orchestrated a significant short squeeze, resulting in the token's rapid price increase. Bitget's CEO, Gracy Chen, confirmed that the exchange has started investigating the matter, while Binance's CEO, Richard Teng, announced that the platform is also examining the claims and will take necessary actions to address any signs of market misconduct. Another exchange, Gate, was also implicated in ZachXBT's investigation.
To encourage whistleblowers to come forward, ZachXBT has offered a $10,000 bounty for anyone providing evidence about the parties involved. The RAVE token, associated with the Web3 project RaveDAO, experienced a remarkable 4,500% price surge over the course of a week, resulting in over $44 million in liquidations, primarily from bearish positions. Notably, nearly 90% of the token's supply was concentrated in three Gnosis Safe wallets at the time, and millions of tokens were transferred to exchanges shortly before the price surge. RaveDAO, which focuses on electronic music events and offers blockchain-based ticketing and community governance, reported $3 million in revenue in 2025.
The project's token, however, has exhibited unusual market behavior, surging from $0.30 to over $6 in a single day and reaching a peak market value of over $6 billion before receding. The token's price has since dropped by more than 50% from its peak and 30% over the last 24 hours. Separate claims suggest a 'bait and liquidate' pattern, where visible token transfers create the illusion of selling pressure, enticing traders into short positions, which can then be exploited by withdrawing tokens and driving prices up, forcing short sellers to buy back at higher prices. While these claims remain unverified, the concentration of token supply supports the possibility of such a scenario.
RaveDAO has addressed the situation, stating that the team is not responsible for the recent price action and plans to liquidate unlocked tokens 'when appropriate,' exploring models that tie team incentives to ecosystem growth.