Almost 90% of the RAVE tokens were held by only three addresses, with millions moved to exchanges prior to the price spike.

Key Takeaways:

• Major platforms Binance and Bitget are looking into claims that insiders manipulated RaveDAO’s RAVE token, which saw a 4,500% weekly jump and triggered $44 million in liquidations.
• Analysis reveals that nearly 90% of RAVE tokens were held in just three wallets, with millions transferred to exchanges ahead of the price spike.
• RaveDAO’s team has denied any role in the price movement. The token has fallen more than 50% from its $27 high and is down 30% in the last 24 hours.

Leading cryptocurrency platforms Binance and Bitget have launched probes into the trading activity of RaveDAO’s RAVE token, following accusations by on-chain investigator ZachXBT alleging that insiders orchestrated a massive short squeeze to drive the token’s sharp increase.

Bitget CEO Gracy Chen stated that the exchange has «begun investigating» the situation, while Binance CEO Richard Teng announced publicly that the platform is also examining the claims and will «always» cooperate to detect market manipulation. Exchange Gate was also identified in ZachXBT’s report.

ZachXBT has additionally pledged a $10,000 reward to any whistleblowers who provide private evidence regarding the parties involved.

The obscure project experienced a rally earlier this week, resulting in over $44 million in RAVE positions, predominantly bearish bets, being liquidated in one day. This followed a 4,500% surge over seven days.

However, the short squeeze underscored the extreme concentration of RAVE tokens among a few wallets. Specifically, nearly 90% of the supply was held in just three Gnosis Safe wallets at the time.

Investigators also noted token transfers to exchanges shortly before the rally began. Millions of tokens were moved to exchanges before prices started surging.

RaveDAO token performance (CoinDesk)

RaveDAO positions 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 various regions and reported approximately $3 million in revenue in 2025.

This footprint contrasts sharply with 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.