Major cryptocurrency exchanges Binance and Bitget have launched investigations into the recent trading activity surrounding RaveDAO's RAVE token, following allegations by on-chain analyst ZachXBT that insiders orchestrated a large short squeeze, driving the token's rapid 4,500% rise. Bitget's CEO, Gracy Chen, confirmed the exchange is investigating, while Binance's CEO, Richard Teng, stated the platform is examining claims of market misconduct. ZachXBT has offered a $10,000 bounty for whistleblowers to come forward with evidence.
The token's surge led to over $44 million in liquidations, with nearly 90% of its supply concentrated in three Gnosis Safe wallets and millions of tokens transferred to exchanges before the rally. RaveDAO, a Web3 project focused on electronic music events, has denied involvement in the price action, stating it plans to liquidate unlocked tokens 'when appropriate' and is exploring models to tie team incentives to ecosystem growth.