Following allegations of a potentially orchestrated rally, major cryptocurrency exchanges Binance and Bitget have initiated investigations into the trading activity surrounding RaveDAO's RAVE token. The token experienced a rapid 4,500% rise, prompting claims of insider involvement. 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, the on-chain sleuth who initially raised concerns, has offered a $10,000 bounty for whistleblowers to share evidence about those involved. The project's token surge led to over $44 million in liquidations, with nearly 90% of the token's supply concentrated in three Gnosis Safe wallets at the time. Millions of tokens were transferred to exchanges before the price began to rise.
RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue and hosts blockchain-based ticketing and community governance. The token's market behavior, however, has raised suspicions, with its value 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, placing it among the largest cryptocurrencies by market capitalization.
A 'bait and liquidate' pattern has also been alleged, where visible transfers suggest selling pressure, drawing traders into short positions, only to have those tokens withdrawn while prices rise, forcing short sellers to buy back at higher prices.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.' The project is exploring models that tie team incentives to ecosystem growth but has not committed to a specific mechanism or timeline.