The RaveDAO project team has rejected accusations of artificially influencing the price of the RAVE token following its rapid rise from $0.25 to nearly $28 and subsequent decline of 94%. These events have raised concerns in the market, prompting two leading cryptocurrency exchanges—Binance and Bitget—to initiate their own investigations into the trading activity of the token.
This is reported by Finway
Investigation into Volatility and Suspicions of Manipulation
Suspicions of manipulation surrounding the RAVE token were raised by on-chain detective ZachXBT. He claims that over 90% of the total supply of the token may be controlled by insiders, creating a risk of a so-called pump and dump scheme. Analysis of trading flows has also raised questions among observers.
In a statement, the RaveDAO team emphasized: “we did not participate in and are not responsible for the recent price changes.”
Binance CEO Richard Teng publicly stated that the exchange is analyzing the situation regarding the RAVE token, while Bitget has joined the investigation. The primary focus of the inquiry is on the abnormal volatility and potential manipulations that could have led to sharp changes in the asset’s price.
RaveDAO’s Strategy and Future Plans
The developers of RaveDAO explained that they plan to utilize a portion of the unlocked tokens to fund operational activities, marketing, and hiring staff. According to the team, this is a typical market practice and is not related to the price spikes of the token.
Additionally, the company is considering implementing token locking mechanisms based on price or performance to more effectively align the interests of all ecosystem participants. This is intended to enhance governance transparency and reduce the likelihood of manipulation.
RaveDAO positions itself as a Web3 platform at the intersection of electronic music and blockchain. Users receive NFTs for participating in events, while the RAVE token serves for voting, purchasing tickets, and accessing events.
At the time of writing, the RAVE token was trading at around $1.76, representing a loss of over 94% in value over the past day, according to TradingView data.
