That's quite a twist. The RAVE token RaveDAO dropped 90% in a day, and now it's clear why. It turned out that about 90% of all tokens were concentrated in three team wallets, and then large sums were suddenly transferred to exchanges just before the price skyrocketed by 10,800% over nine days. It looked like a classic "pump and dump" scheme.

Major trading platforms took notice of this. Several leading CEXs began investigating trading activity around this token. Analyst ZachXBT thoroughly analyzed the blockchain transaction chain, showing how millions of tokens were moved to exchanges before the price increase, attracting traders to take short positions. When these tokens were then withdrawn, the price surged rapidly, forcing short-sellers to close their positions at a loss. In one day, losses amounted to $44 million.

RaveDAO attempted to respond by releasing a statement that the team was not involved in these price fluctuations. The project added that it might sell unlocked tokens to fund operations and is considering various locking models. But it did not specify details about protective mechanisms. Meanwhile, the RAVE token fell from $27.33 to current levels, losing about $5.7 billion in market capitalization in two days.

The project positions itself as a Web3 platform for electronic music events with on-chain tickets and mentions partnerships with several major platforms. But this incident has cast doubt on the trustworthiness of the project's management. When a token drops so sharply and the team does not provide clear guarantees against such manipulations, investors naturally flee.