Binance and Bitget, two major cryptocurrency exchanges, have launched investigations into trading activities surrounding RAVE token from RaveDAO, after blockchain investigator ZachXBT accused insiders of orchestrating a large-scale short squeeze leading to the rapid growth of this token.

The CEO of Bitget exchange, Gracy Chen, stated that the exchange has 'begun investigating' the incident, while Binance CEO Richard Teng later publicly stated that the platform is also looking into the allegations and will 'always' do its part to check for signs of misconduct in the market. Another exchange, Gate, was also mentioned in ZachXBT's investigation.

ZachXBT has personally offered a reward of $10,000 for whistleblowers providing private evidence about the parties involved.

This lesser-known project saw a significant price increase early in the week, leading to RAVE positions worth over $44 million, mostly short positions, being liquidated in just one day. These liquidations occurred after a 4,500% price surge within a week.

However, the short squeeze highlighted the concentration of RAVE tokens in a small group of wallets. In fact, nearly 90% of the supply was held in just three Gnosis Safe wallets at that time.

Investigators also uncovered token transfer transactions to exchanges just before the price surge began. Millions of tokens were moved to the exchange before the price started to skyrocket.

RaveDAO introduces itself as a Web3 project focusing on electronic music events, providing blockchain-based ticketing services and community governance. The project originated from an after-party event in Istanbul in 2023 and has since hosted events in various regions. The project reports revenue of about $3 million in 2025.

That scale is contrary to the market behavior of the token. RAVE traded below $0.50 for most of its history before surging in April. It jumped from around $0.30 to over $6 in just one day, then climbed past $27 before starting to decline.

At its peak, the market value of this token surpassed $6 billion for a brief period, placing it among the largest cryptocurrencies by market capitalization before declining. This token has now dropped more than 50% from its peak and decreased by 30% in the past 24 hours.

‘Baiting and liquidating’

Another allegation focuses on what some describe as a 'baiting and liquidating' model. The idea is that public fund transfer transactions suggest selling pressure, enticing traders to open short positions.

If those tokens are subsequently withdrawn while the price is rising, short sellers may be forced to buy back at a higher price, driving stronger gains for those on the other side of the trade. These allegations have yet to be proven, but the concentration of supply suggests this is a real possibility.

Reports from the community also link this project to figures associated with previous cryptocurrency projects, including ARPA and Bella Protocol, although those connections have not been independently verified. None of the individuals named in these reports have publicly spoken out.

RaveDAO responded to the situation in a series of social media posts, asserting that the team 'did not participate in and is not responsible for the recent price actions.'

In the series of posts, RaveDAO did not address specific allegations on the blockchain, including supply concentration or millions of tokens transferred to exchanges before the price surge, but confirmed they plan to liquidate unlocked token portions 'when appropriate.'

RaveDAO stated they are 'exploring appropriate models, including price or performance-based locks, to align team incentives with the development of the ecosystem.' They paused before committing to any specific mechanisms or roadmaps.

https://coinphoton.com/binance-va-bitget-dieu-tra-vu-token-rave-tang-4-500-nghi-van-thao-tung-noi-bo.html