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 large 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, stated that the platform is also examining the claims and will take action to address any signs of market misconduct.
Another exchange, Gate, was also implicated in ZachXBT's investigation. ZachXBT has offered a $10,000 reward to whistleblowers who come forward with evidence about the parties involved. The RAVE token's price surge led to the liquidation of over $44 million in bearish positions, with nearly 90% of the token's supply concentrated in just three Gnosis Safe wallets at the time.
Investigators have also flagged the transfer of millions of tokens to exchanges shortly before the price rally began. RaveDAO, the project behind the token, describes itself as a Web3 platform focused on electronic music events, offering blockchain-based ticketing and community governance. Despite its relatively small footprint, with $3 million in revenue reported in 2025, the token's market behavior has been highly unusual, with its price surging from $0.30 to over $6 in a single day before receding. At its peak, the token's market value briefly exceeded $6 billion, making it one of the largest cryptocurrencies by market capitalization.
The token has since dropped by over 50% from its peak and 30% in the last 24 hours. Some have alleged a 'bait and liquidate' pattern, where visible transfers suggest selling pressure, drawing traders into short positions, which can then be used to drive prices higher. RaveDAO has addressed the situation, stating that the team is not responsible for the recent price action, but the project's plans to liquidate portions of unlocked tokens and explore new incentive models have raised further questions.