Binance and Bitget are probing trading activities related to RaveDAO’s RAVE token following allegations of a manipulated short squeeze that led to a dramatic price increase. The investigations were prompted by claims from on-chain analyst ZachXBT, who suggested that insiders orchestrated the surge.
Gracy Chen, CEO of Bitget, confirmed that the exchange has initiated an investigation, while Binance’s CEO Richard Teng stated that their platform is also examining the situation and remains committed to identifying any market misconduct. Another exchange, Gate, was also mentioned in ZachXBT’s findings.
In an effort to gather more information, ZachXBT has offered a $10,000 reward for whistleblowers who can provide evidence regarding those involved in the alleged manipulation.
The RAVE token experienced a meteoric rise earlier this week, resulting in over $44 million in liquidations of predominantly bearish positions within a single day. This followed an astonishing 4,500% increase over the week.
However, the rapid price movement has drawn attention to the significant concentration of RAVE tokens, with nearly 90% held in just three Gnosis Safe wallets at the time of the surge. Investigators have also noted that millions of tokens were transferred to exchanges shortly before the price rally began.
RaveDAO, which focuses on blockchain-based ticketing and community governance for electronic music events, originated from a 2023 afterparty in Istanbul and has since expanded its operations. The project reported approximately $3 million in revenue in 2025, but its token had previously traded below $0.50 for most of its existence before the recent spike.
At its peak, RAVE’s market capitalization exceeded $6 billion, making it one of the largest cryptocurrencies. However, the token has since lost more than 50% of its value, including a 30% drop in the last 24 hours.
Some analysts have pointed to a potential “bait and liquidate” strategy, where visible transfers create an illusion of selling pressure, enticing traders to short the asset. If the tokens are later withdrawn while prices rise, short sellers may be forced to buy back at inflated prices, benefiting those on the opposite side of the trade. While these claims have not been substantiated, the concentration of supply raises concerns.
Reports have also linked RaveDAO to individuals associated with previous crypto projects, including ARPA and Bella Protocol, but these connections have not been independently verified. No responses have been received from the individuals named in these reports.
In response to the allegations, RaveDAO issued a statement on social media, asserting that the team is not involved in the recent price movements. However, they did not specifically address the claims regarding supply concentration or the transfers to exchanges prior to the price surge. The project did mention plans to liquidate portions of unlocked tokens “when appropriate” and is considering various models to align team incentives with ecosystem growth.
CoinDesk has reached out to RaveDAO for further comments on the situation.
In related news, Zondacrypto, a Polish crypto exchange, is facing scrutiny over frozen and delayed withdrawals, amid allegations of political influence campaigns. Prime Minister Donald Tusk has accused the company of financially supporting lawmakers who oppose crypto regulation. CEO Przemysław Kral maintains that the exchange is solvent, despite admitting that Zondacrypto cannot access a wallet containing 4,500 BTC due to missing private keys linked to a former CEO.
Binance and Bitget are investigating RaveDAO's RAVE token following allegations of market manipulation by insiders. The token's rapid price surge has raised concerns about supply concentration and potential trading misconduct.