Cryptocurrency exchanges Binance and Bitget have initiated investigations into the recent trading activity surrounding RaveDAO's RAVE token, following allegations by on-chain analyst ZachXBT that insiders orchestrated a large short squeeze, resulting in the token's rapid price increase. Bitget's CEO, Gracy Chen, confirmed the exchange's investigation, while Binance's CEO, Richard Teng, stated that the platform would examine signs of market misconduct.
ZachXBT has offered a $10,000 bounty to whistleblowers who provide evidence about the parties involved. The token's price surge led to the liquidation of over $44 million in RAVE positions, with nearly 90% of its supply concentrated in three Gnosis Safe wallets. Investigators have also flagged token transfers to exchanges prior to the rally. RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue in 2025.
The project's token traded below $0.50 for most of its history before surging in April, with its market value briefly exceeding $6 billion. The token has since dropped over 50% from its peak. Claims of a 'bait and liquidate' pattern have emerged, suggesting that visible transfers may have drawn traders into short positions, only to have the tokens withdrawn later, forcing short sellers to buy back at higher prices.
RaveDAO has addressed the situation, stating that the team is not responsible for the recent price action and plans to liquidate portions of unlocked tokens when appropriate.