Rave DAO loses more than 95% value; is it a pump and dump? 

Since reaching prices above $20 last Friday, Rave DAO has crashed to $0.53 within a couple of days. Many in the crypto market think that the event was a well-orchestrated pump-and-dump attack. 

The chart below shows that Rave DAO (RAVE) has been fluctuating on an uptrend since last week. From showing a value around $2 last week, the token started to climb higher and higher as shown by the trendline. 

When a coin is in an uptrend, it means the price is consistently moving higher over time, forming a structure of higher highs and higher lows.

In simple terms, each rally pushes to a new high, and each pullback holds above the previous low, showing that buyers are gradually gaining control of the market. Eventually, the token reached $22, which is about 900% spike in the price. 

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Traders believed that the token was in an uptrend because of this clear price structure. It reflects strong demand – buyers are willing to enter at higher prices, and sellers are unable to push the price significantly lower.

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As the token started to mark higher lows and higher highs, traders started to believe that it’s a market dynamic or maybe even the easing of the geopolitical situation of the war. There was no major upgrade, no protocol change, no major partnership, and no new utility, but the token was riding high. 

RAVE loses 98% of its value 

However, come Saturday, the sell-off started to emerge, and RAVE started to lose value. It was not a methodical crash where traders stepped into buying the dip, but it was more or less a free fall. The token crashed and lost nearly 98% of its value in just a couple of days. 

Crypto netizen state the crash was a pump and dump 

A crypto netizen shared an image of his technical analysis and stated that this was a deliberate pump and dump that was orchestrated by the RAVE team. Pump and dump is a practice whereby the price of a security is manipulated, being pumped up and then dumped by the people behind the rise in prices.

Pump and dump usually begins with traders and/or the people who are behind such a scheme starting to buy a little-known coin, thus making it appear in high demand.

With the prices beginning to rise, hype gets generated about the security in question, sometimes through social media, influencers, and trading groups, resulting in retail traders entering the market because they do not want to be left behind.

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The netizen wrote on the X post, “That dump wasn’t random; it was engineered. Clean trend, clean breakout expectations, and then instant rug right into key support. That’s where size gets filled, panic sellers exit, and smart money enters.”

However, replying to the allegations of a pump and dump, RAVE stated that its team members were not responsible for this crash. 

RAVE team denies all allegations 

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Further down in the thread, Rave wrote, “Rumors stop at the wise. We are not here for the noise; we are here to build the culture and onboarding layer of Web3. We are going back to building the future of live entertainment on-chain. See you at the next event.”

ZachXBT, an on-chain investigator, replied to RAVE and stated, “You expect the community to believe RAVE went $60M -> $6B market cap organically in 9 days with little to no utility? 

Considering your team handled the initial distribution with a low float, it’s unlikely you do not know the party responsible for it.”

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In addition, ZachXBT called all three exchanges out by name: 

Binance, Bitget, and Gate.io alleged that insiders used their platforms to formulate this massive short squeeze. 

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Following this crash, Bitget CEO Gracy Chen confirmed a probe within the hour, while Binance CEO Richard Teng pledged to investigate “all market misconduct.” Gate exchange’s Kevin Lee stated that they were already working on it.

Bottom Line

Since reaching prices above $20 last Friday, Rave DAO has crashed to $0.53 within a couple of days. Many in the crypto market think that the event was a well-orchestrated pump-and-dump attack. Come Saturday, the sell-off started to emerge, and RAVE started to lose value. It was not a methodical crash where traders stepped in to buy the dip, but rather a free fall. The token crashed, losing nearly 98% of its value in just a couple of days. 

Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency investments are subject to high market risk. Readers should conduct their own research or consult with a financial advisor before making any investment decisions. The views expressed here do not necessarily reflect those of the publisher.

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