RaveDAO has crashed. The token that reached a high of $27.94 a few days ago is now trading at around $1.50, down 95% from its peak, after chain analyst ZachXBT publicly accused insiders of planning a pump and dump scheme and both Binance and Bitget confirmed that they had opened an official investigation.
About $43.68 million in legal positions were liquidated in 24 hours as the claims triggered a sell-off and forced closings in the derivatives markets.
What ZachXBT Said
ZachXBT said that more than 90% of RAVE tokens are managed by a small group of insiders, which would give them the ability to create price increases and sell their assets. He previously tried to contact the co-founder of RaveDAO for clarification and was left unaccounted for.
When Binance and Bitget confirmed that an investigation was underway, any remaining confidence in the token melted away.
The on-chain content contributed to the concern. RAVE had approximately 12,139 shareholders at the time it carried a multi-billion dollar market cap, with approximately 98% of the stock concentrated in internal and external wallets. This structure kept violence at bay when it came to selling problems.
RaveDAO Responds
The team published it a six-part statement, refusing to participate in the price tag and putting things like corporate noise driven by a legitimate project.
“The RaveDAO Group is not responsible for, and is not responsible for, the recent events,” the group wrote. “We take transparency seriously and remain humble and passionate, but our focus is on the goal: to bring more people to Web3 through the events that are happening.”
The statement approved the procedures for the sale of tokens for investment purposes, which are described as being used in accordance with the Token Release process. It also announced that the group is exploring lock-in options for startups or pricing initiatives to align with corporate incentives and ecosystem growth going forward.
The team closed by saying that they are going back and building and will not do what they said in the rumours.
Where RAVE Sells Now
RAVE is currently around $1.50, with the next support identified at $0.80. A recovery would require a retracement of $2.50 as support, a level that now represents major resistance.
The investigation of Binance and Bitget is still ongoing. Until this is achieved, analysts expect the bearish pressure to continue, mainly due to the number of internal products that have not yet been distributed.
The token went from $0.14 to $27.94 in four months. It returned a lot in less than 24 hours.
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