Following allegations of a manipulated rally, major cryptocurrency exchanges Binance and Bitget have initiated investigations into the trading activity surrounding RaveDAO's RAVE token. The claims suggest that insiders orchestrated a significant short squeeze, leading to the token's rapid appreciation. Bitget's CEO, Gracy Chen, confirmed the exchange's investigation, while Binance's CEO, Richard Teng, stated that the platform is examining the claims and will always investigate signs of market misconduct. Another exchange, Gate, was also implicated in the allegations made by on-chain analyst ZachXBT, who is offering a $10,000 bounty for whistleblowers to come forward with evidence.
The token's price surged by 4,500% over 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, and millions of tokens were transferred to exchanges shortly before the price began to rise. RaveDAO, a Web3 project focused on electronic music events with blockchain-based ticketing and community governance, reported $3 million in revenue in 2025. However, the token's market behavior has been at odds with its relatively small footprint, trading below $0.50 for most of its history before the sudden surge.
At its peak, the token's market value briefly exceeded $6 billion, placing it among the largest cryptocurrencies by market capitalization. The token has since dropped by over 50% from its peak and 30% in the last 24 hours.
Separate claims suggest a 'bait and liquidate' pattern, where visible transfers are used to create the illusion of selling pressure, drawing traders into short positions, which can then be forced to buy back at higher prices, further driving up the price. While these claims remain unproven, the concentration of the token's supply supports the possibility. 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, exploring models that tie team incentives to ecosystem growth.