Major cryptocurrency exchanges Binance and Bitget have initiated investigations into the recent trading activity surrounding RaveDAO's RAVE token, following allegations by on-chain analyst ZachXBT that insiders manipulated the market, resulting in a significant short squeeze. The token's value skyrocketed by 4,500% in a week, leading to the liquidation of over $44 million in bearish positions. ZachXBT has offered a $10,000 bounty for information on the parties involved. The probe has highlighted the concentration of RAVE tokens in a few wallets, with nearly 90% of the supply held in three Gnosis Safe wallets, and the transfer of millions of tokens to exchanges before the price surge.
RaveDAO, a Web3 project focused on electronic music events, has denied any involvement in the price manipulation, stating that it is 'not engaged in, nor responsible for, recent price action.' The project plans to liquidate unlocked tokens 'when appropriate' and is exploring models to tie team incentives to ecosystem growth.