Following allegations of a potentially manipulated price surge, major cryptocurrency exchanges Binance and Bitget have initiated investigations into the trading activity surrounding RaveDAO's RAVE token. The claims, raised by on-chain analyst ZachXBT, suggest that insiders may have orchestrated a large short squeeze, resulting in the token's rapid appreciation.
In response, Bitget's CEO, Gracy Chen, confirmed that the exchange has started investigating the matter, while Binance CEO Richard Teng stated that the platform is also examining the claims and will take necessary actions to address any signs of market misconduct. Another exchange, Gate, was also implicated in ZachXBT's investigation. To encourage whistleblowers to come forward, ZachXBT has offered a $10,000 bounty for private information regarding the parties involved.
The RAVE token experienced a significant rally, leading to over $44 million in liquidations, primarily from bearish positions, within a single day. This surge followed a 4,500% increase in the token's value over the course of a week. Notably, nearly 90% of the token's supply was concentrated in three Gnosis Safe wallets at the time, and investigators have flagged substantial token transfers to exchanges shortly before the price surge.
RaveDAO, a Web3 project focused on electronic music events, offers blockchain-based ticketing and community governance. Despite its relatively small footprint, with $3 million in reported revenue in 2025, the token's market behavior has been remarkable, 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. 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 may be used to create selling pressure, drawing traders into short positions. If those tokens are later withdrawn while prices rise, short sellers may be forced to buy back at higher prices, driving further gains for those on the other side of the trade.
While these claims remain unproven, the concentration of supply suggests it is a plausible scenario. Community reports have linked the project to individuals associated with earlier crypto ventures, although these connections have not been independently verified. In response to the situation, RaveDAO stated that the team is not engaged in, nor responsible for, the recent price action.
However, the project did not address specific on-chain allegations, including supply concentration or the large token transfers to exchanges ahead of the price surge. RaveDAO confirmed plans to liquidate portions of unlocked tokens 'when appropriate' and is exploring models that tie team incentives to ecosystem growth, although no specific mechanism or timeline has been committed to.