RaveDAO’s RAVE token plunges 90% as Binance and Bitget launch manipulation probes

• RAVE token prices plummeted nearly 90% in a 24-hour window, erasing approximately $5.7 billion in market capitalization following a record-breaking rally.
• On-chain investigator ZachXBT alleged that 90% of the token supply is controlled by team-linked wallets, claiming coordinated transfers to exchanges triggered a massive short squeeze.
• Binance and Bitget have initiated internal investigations into the trading activity after liquidations reached an estimated $44 million.

The native token of RaveDAO, RAVE, has suffered a catastrophic collapse, losing roughly 90% of its value within a single day. The crash followed a week of meteoric gains that saw the token’s price surge by more than 10,000%, a move now under intense scrutiny by major cryptocurrency exchanges and on-chain investigators who suspect systemic market manipulation.

The turmoil began after ZachXBT, a prominent on-chain sleuth, published findings on X (formerly Twitter) alleging that the RaveDAO team maintained control over nearly the entire circulating supply. According to the investigation, approximately 90% of the 1 billion RAVE tokens were concentrated in just three wallets directly linked to the project’s deployers. ZachXBT noted that large transfers of RAVE to centralized exchanges, including Bitget and Binance, preceded the massive price spike, which effectively drained sell-side liquidity and trapped short sellers in a violent squeeze.

The resulting price action triggered $44 million in liquidations, making it one of the most volatile events for a mid-cap token this year. In response to the growing community outcry, Bitget CEO Gracy Chen confirmed that the exchange has launched an official probe into the matter. Binance is also reportedly reviewing the trading data associated with the RAVE/USDT pairs to determine if internal listing or market-making protocols were breached by bad actors.

“We have noticed the rumors and allegations surrounding RAVE and the RaveDAO team,” the project stated in a public rebuttal. “The team is not involved in the high volatility of the RAVE token price and is not responsible for the recent fluctuations.” Despite the denial, the DAO admitted it might sell a portion of unlocked tokens in the future to fund global recruitment and operating expenses, a move that critics argue confirms the threat of ongoing selling pressure.

Market observers pointed to several red flags that preceded the crash, including the lack of a public codebase and a non-existent security audit for the protocol. At its peak, the project’s fully diluted valuation sat at nearly four times its market cap, a ratio that analysts often cite as a precursor to significant retracements. As of Monday, RAVE was trading near the $8.00 level, down from its all-time high of approximately $28.00 reached just days prior.

Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.

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