RaveDAO has collapsed. A token that reached an all-time high of $27.94 just days ago is now trading around $1.50, down 95% from its peak, after on-chain investigator ZachXBT publicly accused insiders of orchestrating a pump-and-dump scheme and both Binance and Bitget confirmed they had opened formal investigations.
Approximately $43.68 million in leveraged positions were liquidated in 24 hours as the allegations triggered panic selling and a cascade of forced closures across derivatives markets.
What ZachXBT Alleged
ZachXBT claimed that over 90% of RAVE’s token liquidity was controlled by a small group of insiders, a concentration that would give them the ability to manufacture price increases and sell into retail demand. He had previously attempted to contact the RaveDAO co-founder for comment and was left on read.
When Binance and Bitget confirmed investigations were underway, whatever confidence remained in the token evaporated.
On-chain data supported the concern. RAVE had approximately 12,139 holders at a point when it briefly carried a multi-billion dollar market cap, with an estimated 98% of supply concentrated in insider and early wallets. That structure made violent downside moves inevitable once selling pressure arrived.
RaveDAO Responds
The team published a six-part statement, denying involvement in the price action and framing the situation as industry noise directed at a legitimate project.
“RaveDAO team is not engaged in, nor responsible for, recent price action,” the team wrote. “We take transparency seriously and remain humbled by the attention, but our focus is on the mission: bringing mass adoption to Web3 through live events.”
The statement acknowledged plans to sell tokens to fund operations, described as being done according to a Token Release Schedule. It also announced the team is exploring performance-triggered or price-triggered lock mechanisms to align team incentives with ecosystem growth going forward.
The team closed by saying it was returning to building and would not engage further with what it called rumours.
Where RAVE Trades Now
RAVE is currently around $1.50, with the next support identified at $0.80. A recovery would require reclaiming $2.50 as support, a level that now represents significant overhead resistance.
The investigations at Binance and Bitget are ongoing. Until those conclude, analysts expect bearish pressure to continue, particularly given the overhang of insider supply that has not yet been distributed.
The token went from $0.14 to $27.94 in four months. It gave most of it back in less than 24 hours.
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