Binance and Bitget Investigate RAVE Token Amid Short Squeeze Allegations

Binance and Bitget, two of the world's leading cryptocurrency exchanges, have launched separate investigations into suspicious trading activity surrounding RaveDAO's RAVE token. The probe follows allegations by prominent blockchain investigator ZachXBT, who claimed that insiders may have deliberately engineered a short squeeze to manipulate the token's price.

Bitget CEO Gracy Chen confirmed the exchange had begun looking into the matter, while Binance CEO Richard Teng publicly stated the platform would examine any signs of market misconduct. A third exchange, Gate, was also named in ZachXBT's findings. To accelerate the investigation, ZachXBT personally offered a $10,000 bounty to whistleblowers willing to share evidence privately.

The RAVE token surged approximately 4,500% over a single week, jumping from around $0.30 to a peak above $27. This dramatic rally triggered over $44 million in liquidations in one day, the majority of which came from bearish short positions. At its height, RAVE briefly achieved a market capitalization exceeding $6 billion before declining sharply. The token has since fallen more than 50% from its peak.

Analysts noted that nearly 90% of RAVE's total supply was concentrated in just three Gnosis Safe wallets during the rally. Investigators also flagged large token transfers to exchanges immediately before prices began climbing, a pattern some describe as a "bait and liquidate" scheme designed to lure short sellers into vulnerable positions before squeezing them out.

RaveDAO, which positions itself as a Web3 platform for electronic music events and blockchain-based ticketing, denied responsibility for the price movement. In a public statement, the project confirmed it plans to sell portions of unlocked tokens when conditions are appropriate, though it offered no specific timeline or binding commitments.

Community reports have linked the project to figures from previous crypto ventures, though these connections remain unverified. CoinDesk has contacted RaveDAO for further comment.