RaveDAO (RAVE) lost over 95% of its value in a single day, erasing $6.3 billion from its market cap after allegations of insider manipulation sent the token into freefall.
The collapse followed a parabolic rally that saw RAVE gain over 10,000% in two weeks, briefly pushing it into the top 20 cryptocurrencies by market capitalization.
Bitget CEO Gracy Chen Compares RAVE Crash to 2021 GameStop Frenzy
As of this writing, RaveDAO’s powering token, RAVE, is down 95% over the last 24 hours, almost reaching its floor price after topping out at $28.89 on Saturday.
Bitget CEO Gracy Chen compared the RAVE collapse to the 2021 GameStop (GME) short squeeze. She noted that GME, a struggling retailer with a fair value of $10 to $20, reached $483 on collective action alone.
Chen identified FOMO, tribal identity, and self-fulfilling prophecy as the psychological forces behind both events. She argued RAVE followed the same playbook, with X (Twitter) replacing Reddit and a meme coin replacing a physical stock.
On-chain analyst ZachXBT had previously flagged suspicious wallet movements, alleging that insiders held roughly 90% of RAVE’s circulating supply across three wallets.
Two wallets reportedly moved millions of tokens into Bitget during the token’s peak.
RaveDAO Responds to Allegations
RaveDAO denied responsibility for the price action. The team said it was exploring performance-triggered token locks and pledged to donate 20% of event profits to philanthropic causes.
Meanwhile, analyst Kyle Doops noted RAVE moved from euphoria to wipeout in days. Some traders also reported being unable to close positions on exchanges, raising further concerns about how platforms handled the volatility.
Still, some users have called out Bitget for its handling of the RAVE incident, describing the exchange’s response as immature and unprofessional.
Critics argued that liquidating user positions on both sides of the trade set a dangerous precedent. Several compared Bitget to FTX, warning that trust, not capital, is the foundation of any exchange, and once lost, it may be impossible to recover.
Both Bitget and Binance have confirmed internal reviews of trading activity surrounding RAVE.
