- RaveDAO has denied responsibility for its RAVE token’s extreme price volatility following allegations of market manipulation.
- Major cryptocurrency exchanges Binance and Bitget have opened probes into the suspicious trading activity surrounding the token.
- Onchain investigator ZachXBT accused the project of a pump-and-dump scheme, alleging over 90% of the token supply may be controlled by insiders.
- The Web3 entertainment project plans to sell unlocked tokens to fund operations and marketing despite the controversy.
Onchain allegations and sudden exchange reviews have thrust RaveDAO into controversy following its RAVE token’s meteoric and catastrophic collapse. The token had soared from $0.25 to nearly $28 before plummeting over 80%, which led onchain investigator ZachXBT to accuse the project of orchestrating a pump-and-dump scheme. He claimed that a concentrated group of insiders may control over 90% of the token supply.
Consequently, RaveDAO explicitly denied any role in the price action in a thread posted on X. The project stated it was “not engaged in, nor responsible for, recent price action,” responding to the mounting scrutiny. However, the denials were met with immediate regulatory attention from leading crypto platforms.
Both Binance and Bitget confirmed they are investigating the situation. Binance CEO Richard Teng wrote that the exchange was “looking into it,” while Bitget CEO Gracy Chen said an investigation into RAVE trading had begun. This probe coincides with a broader surge in DeFi exploits in April, which Cointelegraph reported includes over a dozen protocols.
Meanwhile, RaveDAO outlined plans to sell portions of its unlocked tokens to fund operations, marketing, and hiring. The team said it is exploring price-triggered locks to align incentives, arguing that “building a movement requires resources.” At the time of writing, RAVE is trading at $1.36, down 94.95% over the past day, according to data from CoinMarketCap.
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