Binance, Bitget and Gate.io were drawn into the fallout after on-chain investigator ZachXBT alleged a coordinated pump-and-dump scheme tied to concentrated token holdings.
RAVE, the token linked to RaveDAO, surged from about $0.25 to $27.30 in nine days before collapsing from roughly $26 to nearly $1 within 24 hours, wiping out nearly $6 billion in market value, according to the source. On-chain investigator ZachXBT said only about $52 million in liquidations could explain a small portion of the decline and alleged the move reflected a coordinated pump-and-dump scheme. He said nine wallets tied to the project’s early distribution held nearly 95% of total supply, a level of concentration that could allow insiders to influence prices, and noted large transfers to exchanges before the rally. Binance co-CEO Richard Teng and Bitget CEO Gracy Chen said their exchanges had opened investigations, while Gate.io was also named in the allegations. ZachXBT also said the 10,800% rally triggered more than $40 million in short liquidations, showing how a short squeeze (rapid price rise forcing bearish traders to close positions) can accelerate gains without durable spot demand. RaveDAO denied involvement in the price action and said token unlocks were sold to cover operating costs, but its statement did not address the specific wallet allegations.