Bitget CEO Draws GameStop Parallel As RaveDAO (RAVE) Falls Nearly 100%
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 achieve 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 ground value after topping out at $28.89 on Saturday.
Bitget CEO Gracy Chen in contrast the RAVE collapse to the 2021 GameStop (GME) short 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 identification, and self-fulfilling prophecy because the psychological forces behind each occasions. She argued RAVE followed the same 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 supply throughout three wallets.
Two wallets reportedly moved tens of millions of tokens into Bitget through the token’s peak.
RaveDAO Responds to Allegations
RaveDAO denied duty for the worth motion. The group mentioned it was exploring performance-triggered token locks and pledged to donate 20% of occasion income to philanthropic causes.
Meanwhile, analyst Kyle Doops noted RAVE moved from euphoria to wipeout in days. Some merchants additionally reported being unable to shut positions on exchanges, elevating additional considerations about how platforms dealt with the volatility.
Still, some customers have known as out Bitget for its dealing with of the RAVE incident, describing the alternate’s response as immature and unprofessional.
Critics argued that liquidating person positions on each side of the commerce set a harmful precedent. Several in contrast Bitget to FTX, warning that belief, not capital, is the muse of any alternate, and as soon as misplaced, it could be unattainable to get better.
Both Bitget and Binance have confirmed inside opinions of buying and selling exercise surrounding RAVE.
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