on-chain investigator ZachXBT has just accused insiders of being behind an organized "pump-and- Dump " scheme involving RaveDAO (RAVE) on major centralized exchanges.
These allegations emerged after RAVE's price surged by approximately 5,600% in just one week. The Token price rose from $0.25 to $14.19 before undergoing a sharp correction.
The insider group allegedly controls over 90% of the RAVE supply.
ZachXBT stated that a group of individuals holding over 90% of the circulating RAVE supply coordinated price manipulation on Binance, Bitget , and Gate exchanges .
on-chain data shows that approximately $42 million worth of RAVE was transferred to the Bitget exchange, and then $32 million was withdrawn back on-chain in a short period of time.
This tactic appears to be aimed at luring short sellers into selling. When the actual selling pressure is removed from the Order Book, the triggered liquidation orders create an automatic "domino effect" of buying.
In 24 hours, RAVE saw Derivative contract liquidations totaling $30.6 million, second only to Bitcoin (BTC) and Ethereum (ETH).
ZachXBT urged Binance and Bitget leadership to launch an internal investigation and remove those involved. Initially, he pledged a $10,000 personal reward for anyone providing information. Later, community contributions increased the reward to $25,000.
Bitget responds to pressure.
Bitget CEO Gracy Chen has officially responded after facing pressure from the community. This initial response suggests Bitget is willing to consider the allegations, however no specific action has been announced yet.
ZachXBT continues to urge the crypto community to continue pressuring centralized exchanges to be more transparent. It remains unclear whether Binance and Gate will launch similar investigations in the future.
RaveDAO (RAVE) price fluctuation chart. Source: CoingeckoRaveDAO's RAVE Token has dropped nearly 27% in the last 24 hours and is trading around $13.77 at the time of writing.
