RaveDAO’s native token, RAVE coin, skyrocketed over 44% on Saturday, April 18. While the phenomenal surge has impressed investors, crypto sleuth ZachXBT flagged concerns of an insider pump-and-dump scheme in a social media post.
ZachXBT Flashes RaveDAO Insider Pump-and-Dump Scheme
In a recent post on X, ZachXBT claimed that the RAVE coin is subject to insider trading. He shared a snapshot of the token’s price chart, which shows an unexpected rally of a whopping 10,383% in the last 30 days. While early investors might be feeling lucky about it, the movement certainly raises questions of market manipulation.
ZachXBT called upon Bitget CEO Gracy Chen and Binance Co-founder Yi He to address this issue immediately. He asked them “to do better and launch internal investigation offboarding the responsible actors.” The incident comes at an alarming timing as Trump-backed WLFI is also facing scam allegations.
He even offered a $10,000 bounty for whistleblowers, who could come forward and expose the evidence related to involved parties in the RAVE coin price manipulation. He concluded, “We cannot allow this blatant market manipulation by insiders controlling >90% RAVE support to further extract from retail investors.”
The crypto sleuth’s post came in response to RaveDAO warning users of heightened volatility earlier this week. At the time, they wrote, “We encourage all users to remain mindful of the associated risks and to exercise caution, particularly when using leveraged positions.”
How Much Stake Do RAVE Coin Insiders Hold?
For further context, the Web3 investigator attached a screenshot of an X user revealing RAVE coin’s insider secrets. In that post, the user noted that around 95.3% of RAVE’s stake is controlled by the RaveDAO team, which can be verified via onchain tracking crypto tools.
He added that 3.1% stake is held by Bitget users, who are also likely insiders. Meanwhile, the remaining 0.34% lies with Gate.io users, who are also deemed to be insiders.
The team is accused to leveraging a short squeeze as Rave coin market cap surged to over $6.52 billion. They are expected to dump all the tokens at once to reap profits as seen in previous crypto pump-and-dump scams. Amid pump-and-dump allegations, the RAVE token price continued surging by 44% to $27.23 at press time on Saturday.
For now, the Rave team, Binance, and Bitget officials have kept quiet on the matter.