RaveDAO (RAVE) misplaced over 95% of its worth in a single day, erasing $6.3 billion from its market cap after allegations of insider manipulation despatched the token into freefall.
The collapse adopted a parabolic rally that noticed RAVE acquire over 10,000% in two weeks, briefly pushing it into the highest 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% during the last 24 hours, nearly reaching its flooring value after topping out at $28.89 on Saturday.
Bitget CEO Gracy Chen in contrast the RAVE collapse to the 2021 GameStop (GME) brief squeeze. She famous that GME, a struggling retailer with a good worth of $10 to $20, reached $483 on collective motion alone.
Chen recognized FOMO, tribal id, and self-fulfilling prophecy because the psychological forces behind each occasions. She argued RAVE adopted the identical playbook, with X (Twitter) changing Reddit and a meme coin changing a bodily inventory.
On-chain analyst ZachXBT had beforehand flagged suspicious pockets actions, alleging that insiders held roughly 90% of RAVE’s circulating provide throughout three wallets.
Two wallets reportedly moved hundreds of thousands of tokens into Bitget throughout the token’s peak.
RaveDAO Responds to Allegations
RaveDAO denied duty for the worth motion. The workforce stated it was exploring performance-triggered token locks and pledged to donate 20% of occasion earnings to philanthropic causes.
In the meantime, analyst Kyle Doops famous RAVE moved from euphoria to wipeout in days. Some merchants additionally reported being unable to shut positions on exchanges, elevating additional issues about how platforms dealt with the volatility.
Nonetheless, some customers have referred to as out Bitget for its dealing with of the RAVE incident, describing the change’s response as immature and unprofessional.
Critics argued that liquidating consumer positions on each side of the commerce set a harmful precedent. A number of in contrast Bitget to FTX, warning that belief, not capital, is the muse of any change, and as soon as misplaced, it might be unimaginable to recuperate.
Each Bitget and Binance have confirmed inside opinions of buying and selling exercise surrounding RAVE.
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