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 manipulated the market, resulting in a significant short squeeze. The token's price skyrocketed by 4,500% in a week, leading to the liquidation of over $44 million in 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 before the price surge. RaveDAO, the project behind the token, claims to be focused on Web3-based electronic music events and has reported $3 million in revenue in 2025.
However, the token's market behavior has raised suspicions, with some alleging a 'bait and liquidate' pattern. The investigation is ongoing, with ZachXBT offering a $10,000 bounty for whistleblowers to come forward with evidence. RaveDAO has denied any involvement in the price manipulation, stating that the team is 'not engaged in, nor responsible for, recent price action.'