- ZachXBT accused RaveDAO insiders of a RAVE pump-and-dump and urged exchange reviews.
- Bitget began a probe after RAVE surged 1,200% in a week amid supply and flow concerns.
- Wallet concentration, low float, and no audit added to concerns around the RAVE rally.
On-chain investigator ZachXBT accused RaveDAO insiders of running a coordinated pump-and-dump scheme involving RAVE. The alleged activity took place across major centralized exchanges. The platform urged Binance, Bitget, and Gate.io to review the trading and disclose their findings.
Bitget Reviews RAVE as Price Surge Draws Scrutiny
In an X post, ZachXBT highlighted that insiders appear to control most of the token supply. He also said crime-linked tokens damage the crypto sector’s credibility.
Chief Executive Officer Gracy Chen said the exchange had already opened an investigation into RAVE. Her statement came after ZachXBT publicly called for exchange action.
However, ZachXBT announced a $25,000 bounty for information tied to alleged irregularities around the token. RAVE serves as the native utility and governance token of RaveDAO.
Recent price action brought the token under heavier scrutiny. CoinMarketCap data showed RAVE climbed from $0.25 to $18 between April 1 and April 15. After that move, the token eased before pushing higher again.
Over the past week, gains accelerated sharply. RAVE surged 1,200% from $2.1 to around $28. That rise intensified attention on supply concentration and exchange flows.
According to ZachXBT, wallets linked to the RaveDAO deployer sent 18.58 million RAVE to Bitget before the rally began. No announcement accompanied the transfer. At that point, the token was still trading below $0.50.
How Short Squeeze Claims Raised Red Flags
Roughly 10 hours later, the rally started. At the same time, 74% of traders on Binance were holding short positions. ZachXBT alleged that insiders then withdrew 29.78 million RAVE from Bitget, removing exchange selling pressure.
That sequence, he said, triggered a short squeeze. Price then jumped from $0.27 to more than $14 in seven days. The move marked a gain of over 5,500%.
Before making the claims public, ZachXBT said he contacted a RaveDAO co-founder. His message was seen but not answered. That outreach came before he published the accusation.
During the first rally, the project’s official account issued a limited warning. Users were told to remain mindful of the risks tied to volatility.
Additional warning signs highlighted by Intergovernmental Blockchain Advisor Anndy Lian. He said the top 10 wallets hold 98.16% of the total supply. Only 24% to 25% of the one billion token supply is currently in circulation.
Lian also said the fully diluted valuation stands at about four times the current market cap. In his view, that ratio has historically come before retracements of 40% to 60%. He further noted that the project has no public codebase and no completed security audit.
Related: RaveDAO Surges to $27.94 ATH as ZachXBT Alleges Market Manipulation
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