The RaveDAO project has categorically rejected allegations of manipulating the price of its own RAVE token, which arose after a rapid increase in its value followed by a sharp decline. In light of this situation, major cryptocurrency exchanges Binance and Bitget have initiated their own investigations into the abnormal trading activity surrounding this digital asset.
This is reported by Business • Media
Sharp Price Fluctuations and Insider Suspicions
Within a few days, the RAVE token surged from $0.25 to nearly $28, after which its price plummeted by 94%. Such volatility has drawn the attention of analysts and on-chain researchers. In particular, analyst ZachXBT publicly stated that there are signs of a so-called pump and dump scheme and suggested that over 90% of all RAVE tokens may be controlled by insiders, with some transactions raising suspicions of manipulation.
In a statement, the team emphasized that they “did not participate in and are not responsible for the recent price changes.”
Amid the scandal, Binance CEO Richard Teng announced the start of a review of trading operations involving the RAVE token on their platform. Similar actions were confirmed by Bitget, which also initiated an internal investigation to uncover possible market manipulation. In both cases, the focus is on atypical volatility and potential attempts to influence the market.
RaveDAO Team’s Position and Future Plans
The RaveDAO team explained that they plan to implement part of the unlocked tokens to fund operational activities, marketing, and team expansion. The developers emphasize that token sales are a common practice in the industry and are in no way related to the sharp price changes.
RaveDAO also announced its intention to introduce additional token locking mechanisms that will depend on the price or performance of the project. According to the team, this will help better align the interests of participants and ensure the stability of the ecosystem.
RaveDAO positions itself as a Web3 platform operating at the intersection of electronic music and blockchain technology. Users receive NFTs for participating in events, and the RAVE token is used for governance, ticket purchases, and access to various events.
At the time of publication, the RAVE token was trading at around $1.76, which is 94% lower than its peak values, according to TradingView data.
It is worth noting that earlier in the U.S., 10 individuals were uncovered in a case involving manipulation of crypto assets among market makers.