Major Exchanges Probe RaveDAO Following 4,500% Token Surge and Manipulation Claims

Binance and Bitget have launched formal investigations into the trading activity of RaveDAO’s RAVE token following allegations of market manipulation. The probe follows reports from on-chain analyst ZachXBT, who claims insiders engineered a massive short squeeze to artificially inflate the token's value. Binance CEO Richard Teng and Bitget CEO Gracy Chen both confirmed their platforms are examining signs of misconduct. The RAVE token experienced a staggering 4,500% rally over a single week, skyrocketing from approximately $0.30 to a peak above $27. This volatility resulted in over $44 million in liquidations, primarily impacting traders who had taken bearish positions. At its zenith, the project's market capitalization briefly exceeded $6 billion, despite the project reporting only $3 million in revenue for 2025. Evidence suggests a high concentration of ownership, with nearly 90% of the total supply held in just three Gnosis Safe wallets. Investigators also noted significant token transfers to exchanges immediately preceding the price surge, pointing toward a 'bait and liquidate' strategy designed to trap short sellers by simulating selling pressure before driving prices higher. RaveDAO, a Web3 project focused on electronic music events, has denied responsibility for the price action via social media. While the team mentioned plans to liquidate unlocked tokens in the future using performance-triggered locks, they have not addressed the specific allegations regarding supply concentration. The token has since plummeted, losing over 50% of its peak value and 30% in the last 24 hours.