The RaveDAO project has denied involvement in the extreme volatility of its RAVE token, which recently surged over 11,000% before crashing more than 80%. This follows accusations by on-chain investigator ZachXBT of a potential pump-and-dump scheme, prompting reviews from major exchanges like Binance and Bitget. RaveDAO also announced plans to sell unlocked tokens to fund its operations and growth.
RaveDAO has denied any role in the recent surge and sharp collapse of its RAVE token. The project stated it was “not engaged in, nor responsible for, recent price action,” after the token soared from around $0.25 to nearly $28 before plummeting.
The denial responds to allegations from on-chain investigator ZachXBT, who accused the project of orchestrating a pump-and-dump. He claimed over 90% of the token supply may be controlled by insiders and called for exchange action.
Both Binance and Bitget confirmed they are investigating the trading activity. Binance CEO Richard Teng wrote “We’re looking into it,” while Bitget CEO Gracy Chen said the exchange had started its probe.
RaveDAO also outlined plans to sell portions of unlocked tokens to fund operations, marketing, and hiring. The team said it is exploring price-triggered or performance-triggered locks to better align incentives.
The Web3 entertainment project combines electronic music events with blockchain technology. Its RAVE token is used for governance, ticketing, and access to real-world experiences like festivals.
At the time of writing, RAVE is trading at $1.36, down 94.95% over the past day according to data from CoinMarketCap. The incident occurs amidst a surge of DeFi hacks affecting more than a dozen protocols since early April.
