Major cryptocurrency exchanges Binance and Bitget have initiated investigations into the recent trading activity surrounding RaveDAO's RAVE token. This move follows allegations by on-chain analyst ZachXBT that insiders orchestrated a significant short squeeze, resulting in the token's rapid appreciation. Bitget's CEO, Gracy Chen, confirmed the exchange's investigation, while Binance's CEO, Richard Teng, stated that the platform is also examining the claims and will investigate any signs of market misconduct. ZachXBT has offered a $10,000 bounty for whistleblowers to come forward with evidence about the parties involved.
The RAVE token experienced a 4,500% surge over a week, leading to over $44 million in liquidations, primarily from 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 increase. RaveDAO, a Web3 project focused on electronic music events, has reported $3 million in revenue in 2025 but has a market footprint that contrasts with its token's market behavior. The token's price jumped from $0.30 to over $6 in a day and briefly exceeded a $6 billion market value before receding.
Claims of a 'bait and liquidate' pattern have also emerged, suggesting that visible transfers may have been used to lure traders into short positions, which were then liquidated at higher prices. RaveDAO has addressed the situation, stating that the team is not responsible for the recent price action and plans to liquidate unlocked tokens when appropriate, exploring models that tie team incentives to ecosystem growth.