Major cryptocurrency exchanges Binance and Bitget are investigating the trading activity surrounding RaveDAO's RAVE token after allegations emerged that insiders orchestrated a large short squeeze, leading to a rapid price increase. The investigation was sparked by on-chain analyst ZachXBT, who claimed that millions of tokens were transferred to exchanges before the price surge, with nearly 90% of the token's supply concentrated in just three Gnosis Safe wallets. The token's price rallied by 4,500% over the course of a week, resulting in over $44 million in liquidations. ZachXBT has offered a $10,000 bounty to whistleblowers who can provide evidence about the parties involved.
RaveDAO, a Web3 project focused on electronic music events, has denied any involvement in the price surge, stating that it is 'not engaged in, nor responsible for, recent price action.' The project has announced plans to liquidate portions of unlocked tokens and is exploring models to tie team incentives to ecosystem growth.