Binance, Bitget Under Fire Over Rave Token's 7,000% Rally

Crypto exchanges Binance and Bitget are investigating claims of market manipulation after the Rave token crashed 90% over the weekend, following a 7,000% rally. The token's sudden surge and subsequent collapse have raised questions about the role of market manipulation in the crypto market.

Market Manipulation Allegations

The Rave token's rise and fall have sparked allegations of pump-and-dump schemes, where insiders artificially inflate the price of a token before selling it at the peak, leaving retail investors with significant losses. According to ZachXBT, a pseudonymous crypto sleuth, the alleged Rave token pump-and-dump originated from three exchanges: Bitget, Binance, and Gate.

Suspicious Transactions

Onchain records show that 75% of the entire Rave token supply sits in a single wallet controlled by the RaveDAO team, with two more wallets connected to the main RaveDAO wallet holding around 10% of the token's supply. This means that potentially 85% of the token's entire supply couldn't be bought or sold by traders, making it easier for large buys and sells to move the price.

Investigations and Responses

Binance CEO Richard Teng and Bitget CEO Gracy Chen have both stated that they are investigating the alleged market manipulation on their respective exchanges. "We will always do our part to investigate all market misconduct," Teng wrote on X. Gate did not immediately respond to a request for comment.

Key Takeaways

• The Rave token's 7,000% rally and subsequent 90% crash have raised concerns about market manipulation in the crypto market.
• Binance and Bitget are investigating claims of market manipulation related to the Rave token.
• The token's supply is heavily concentrated, with 75% held in a single wallet controlled by the RaveDAO team.
• Regulatory scrutiny of crypto market manipulation is increasing, with dozens of newly-launched tokens facing similar allegations.

Frequently Asked Questions

What is RaveDAO?

RaveDAO is a digital cooperative that organizes electronic dance parties and builds community-raised local chapters.

How does market manipulation affect retail investors?

Market manipulation can result in significant losses for retail investors, who may be left with worthless tokens after a pump-and-dump scheme.