[Alpha Biz= Kim Minyoung] Global cryptocurrency exchanges Binance and Bitget have launched investigations into suspected insider involvement following the sharp surge in the price of the RAVE token.

According to crypto market tracker CoinMarketCap, RAVE’s price skyrocketed from $0.25 at the beginning of the month to $25 on April 18, marking an increase of nearly 10,000% within just over two weeks. The token’s market capitalization exceeded $18 billion at its peak, propelling it to 16th place in global rankings—surpassing major altcoins such as Litecoin, Avalanche, and Sui.

Amid growing speculation of insider manipulation behind the rapid price spike, both exchanges confirmed they have initiated reviews of trading activity. Gracy Chen, CEO of Bitget, stated that the firm had “immediately launched an investigation,” while Richard Teng, CEO of Binance, emphasized that the exchange “will always investigate unfair market practices.”

Concerns over insider involvement stem from indications that large volumes of RAVE tokens were transferred from developer-linked wallets to exchanges including Binance and Bitget shortly before the price surge. Some claims suggest that up to 98% of the circulating supply was moved by insiders during that period.

The rally also triggered significant liquidations, with over $44 million worth of positions wiped out in a single day last week—most of them short positions betting on a price decline.

Market observers have raised the possibility that insiders orchestrated a short squeeze. A short squeeze occurs when investors holding short positions are forced to buy back assets to limit losses as prices rise, further accelerating the upward movement.

Analysts suggest that insiders may have created the appearance of strong selling pressure—typically interpreted as a bearish signal—by transferring large token volumes to exchanges, thereby inducing investors to take short positions. Subsequently, with limited circulating supply, the price may have been driven sharply higher, triggering a cascade of forced buybacks.

Launched in November 2023, RAVE is a digital asset project that aims to integrate electronic dance music (EDM) events with Web3 infrastructure. The project remained largely under the radar until last month, before gaining rapid market attention amid its recent price surge.

 

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