RaveDAO Token Crashes, Sheds $6.6 Billion in Value as Exchanges Probe Alleged Manipulation

The euphony stopped abruptly for RaveDAO this play aft salient pseudonymous sleuth ZachXBT called connected exchanges to analyse trading tied to the little-known amusement collective’s token—a petition that seemingly spooked investors, swiftly wiping retired billions of dollars successful worth successful the process.

RAVE’s marketplace headdress has plunged much than $6.6 cardinal since Saturday, astir instantly aft the crypto industry’s astir recognized blockchain researcher called connected exchanges Binance, Bitget, and Gate to analyse whether RAVE’s terms was being manipulated.

Now worthy $150 million, according to CoinGecko, the token’s full worth has collapsed astir 98% since ZachXBT vocalized his suspicions successful an X post. In little than 2 weeks, RAVE had go 1 of the crypto sector’s astir invaluable tokens, rising seemingly retired of nowhere.

RAVE’s owners tin usage the token to bash things similar found section chapters nether RaveDAO’s brand, acquisition tickets, and enactment successful NFT releases. “The effect is an system that grows done existent enactment and taste reach, not short-term speculation,” RAVE’s achromatic insubstantial states.

As the token fell connected Saturday, RaveDAO claimed that “is not engaged in, nor liable for, caller terms action.” However, ZachXBT said that helium recovered suspicious enactment tied to addresses linked to RaveDAO’s squad this month, peculiarly connected Bitget.

Because RAVE’s autumn coincided with $52 cardinal successful liquidated positions during a 24-hour period, the sleuth said the token’s once-dizzying valuation pointed to “a manipulated and unsustainable valuation” that warrants faster involution among exchanges.

Bitget CEO Tracy Chen, Binance CEO Richard Teng, and Gate Chief Business Officer Kevin Lee each indicated that their respective firms were looking into the token’s caller performance. As of Monday, the exchanges had yet to study backmost connected what they discovered.

On Sunday, wallets linked to RaveDAO’s squad sent RAVE tokens worthy $24 cardinal to Bitget, information connected blockchain analytics level Arkham Intelligence showed. The token changed hands astir $0.56 connected Monday, down from an all-time precocious of $27.33 connected Saturday. 

Decrypt has reached retired to RaveDAO, Bitget, Binance, and Gate for comment.

The token, which debuted successful December, exists connected Ethereum, Binance’s BNB Chain, and Base, the Coinbase-launched Ethereum layer-2 scaling network. ZachXBT noted that tokens linked to RAVE’s archetypal organisation controlled astir 95% of the token’s supply.

In September, RaveDAO announced that it had teamed with World Liberty Financial, the crypto task backed by U.S. President Donald Trump and his sons. RaveDAO said it would usage World Liberty’s USD1 stablecoin for ticketing and user purchases successful South Korea.

The project’s authoritative Instagram relationship advertises upcoming events successful Lisbon and Hong Kong. Yet wrong RaveDAO’s authoritative Discord channel, astir members appeared funny successful discussing the terms that they had bought RAVE astatine during the token’s surge.