Binance and Bitget Probe RAVE Token's 4,500% Surge After Insider Manipulation Claims
Two major crypto exchanges, Binance and Bitget, are investigating RAVE token after its price shot up 4,500% in one week. A crypto detective called ZachXBT claims insiders manipulated the market by forcing traders to buy back borrowed tokens at higher prices.
RAVE token's price exploded from $0.27 to over $14 in seven days, but the rally may have been engineered by insiders. Crypto detective ZachXBT found that 95% of RAVE tokens were controlled by the RaveDAO team, with another 3% held by likely insiders on Bitget exchange.
The manipulation worked like this: 74% of traders on Binance had bet against RAVE by borrowing tokens to sell them, hoping the price would fall. But insiders then pulled 29.78 million tokens from Bitget exchange, creating a shortage. This forced the traders who had bet against RAVE to buy tokens at much higher prices to cover their bets.
This type of scheme is called a short squeeze. It happens when people who borrowed assets to sell them get trapped and have to buy back at higher prices, pushing prices even higher. Nearly 90% of RAVE's supply sat in just three digital wallets, and millions of tokens moved to exchanges right before the price surge.
Both Binance and Bitget have now opened investigations into the trading activity. The exchanges are looking into whether this was market manipulation, which is illegal in traditional finance but harder to regulate in crypto markets.
This shows how easy it is to manipulate smaller cryptocurrency markets when a few people control most of the tokens. If you trade crypto, cases like this reveal how risky it can be when exchanges don't catch suspicious activity quickly enough.
Watch for results of the Binance and Bitget investigations and potential action against RAVE token trading.
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