Almost 90% of the total RAVE supply was held in just three wallets, with millions of tokens moved to exchanges prior to the dramatic price increase.

Key Takeaways:

• Major exchanges Binance and Bitget are looking into claims that insiders manipulated the price of RaveDAO’s RAVE token, which skyrocketed 4,500% in seven days and triggered $44 million in liquidations.
• Almost 90% of the total RAVE supply was held in just three wallets, with millions of tokens moved to exchanges prior to the dramatic price increase.
• RaveDAO’s team denies involvement in the price action. The token has dropped over 50% from its $27 peak and is down 30% in the last 24 hours.

Two leading cryptocurrency platforms, Binance and Bitget, have launched probes into the trading activity of RaveDAO’s RAVE token following on-chain investigator ZachXBT’s accusations that insiders orchestrated a massive short squeeze to artificially inflate the token’s value.

Bitget’s CEO, Gracy Chen, confirmed that her exchange has initiated an investigation into the matter. Binance CEO Richard Teng also stated publicly that Binance is reviewing the claims and remains committed to addressing any signs of market manipulation. Gate exchange was also named in ZachXBT’s report.

ZachXBT has additionally offered a $10,000 reward to whistleblowers who provide private evidence regarding the parties involved in the alleged scheme.

The obscure project experienced a dramatic rally earlier this week, resulting in over $44 million in RAVE positions being liquidated in a single day, with the majority being bearish bets. This liquidation event followed a 4,500% price increase over the week.

However, the short squeeze has drawn attention to the heavy concentration of RAVE tokens among a few wallets. At the time, nearly 90% of the total supply was held in just three Gnosis Safe wallets.

Investigators also noted large token transfers to exchanges just before the rally commenced. Millions of tokens were moved to exchanges before prices started surging.

RaveDAO token performance (CoinDesk)

RaveDAO markets itself as a Web3 initiative centered on electronic music events, providing blockchain-based ticketing and community governance. Originating from a 2023 afterparty in Istanbul, the project has since organized events across multiple regions and reported approximately $3 million in revenue for 2025.

This business footprint stands in stark contrast to the token’s market behavior. RAVE traded below $0.50 for most of its history before spiking in April. It jumped from about $0.30 to over $6 in a single day, then climbed past $27 before starting to recede.

At its peak, the token’s market value briefly exceeded $6 billion, placing it among the largest cryptocurrencies by market cap before dropping. The token is now down more than 50% from its peak and 30% over the last 24 hours.

‘Bait and liquidate’

A separate claim centers on what some describe as a “bait and liquidate” pattern. The idea is that visible transfers suggest selling pressure, drawing traders into short positions.

If those tokens are later withdrawn while prices rise, short sellers may be forced to buy back at higher prices, driving further gains for those on the other side of the trade. These claims remain unproven, but the concentration of supply suggests it’s a real possibility.

Community reports have also linked the project to figures associated with earlier crypto ventures, including ARPA and Bella Protocol, though those connections have not been independently verified. None of the individuals named in these reports has responded publicly.

RaveDAO addressed the situation in a social media thread, stating that the team is “not engaged in, nor responsible for, recent price action.”

In the thread, RaveDAO did not address specific onchain allegations, including supply concentration or the millions transferred to exchanges ahead of the pump, but confirmed it does plan to liquidate portions of unlocked tokens “when appropriate.”

RaveDAO said it was «exploring appropriate models, including price-triggered or performance-triggered locks, that tie team incentives to ecosystem growth.» It stopped short of committing to any specific mechanism or timeline.

CoinDesk has reached out to RaveDAO for comments.