Rain protocol's native token RAIN surged 86.7% over one week to $0.014, up from $0.0075, following the Rain Foundation's announcement of a $100 million liquidity injection plan on May 26. The foundation disclosed plans to deploy $50 million in USDT and $50 million in RAIN tokens. On-chain analyst ZachXBT flagged concerns on May 31 about potential market manipulation, identifying deployer-related addresses conducting repeated Uniswap V3 liquidity provider transactions and warning investors of hidden supply risks.
Rain Foundation Announces $100M Liquidity Injection Plan
The Rain Foundation announced on May 26 via X that it would inject $100 million in liquidity, consisting of $50 million in USDT and $50 million in RAIN tokens. The foundation stated this allocation would flow directly into the platform ahead of the World Cup. According to the foundation's post, Rain entered the global top three for prediction market total value locked (TVL), trailing only Polymarket and Kalshi.
ZachXBT Identifies Repeated LP Transactions and Hidden Supply Risks
On-chain analyst ZachXBT stated on May 31 that addresses linked to the RAIN deployer were conducting large volumes of Uniswap V3 liquidity provider transactions. ZachXBT noted that the team is tied to DAT Enlivex and launchpad Gems.vip. The analyst explained that specific actors could use multiple wallets to artificially create trading volume by supplying or withdrawing liquidity, while releasing fewer tokens into circulation than actual supply to drive rapid price increases.
ZachXBT criticized centralized exchanges for addressing investor protection only after price collapses. He stated that some exchanges may have separate arrangements with active market makers. ZachXBT warned that participating in trading such tokens with hidden supply carries high manipulation risk and likely serves as exit liquidity for insiders.
FAQ
What caused RAIN token's 87% price increase over one week?
RAIN token rose 86.7% from $0.0075 to $0.014 following the Rain Foundation's announcement on May 26 of a $100 million liquidity injection plan consisting of $50 million in USDT and $50 million in RAIN tokens.
What concerns did ZachXBT raise about RAIN token on May 31?
ZachXBT identified deployer-related addresses conducting repeated Uniswap V3 liquidity provider transactions and warned of potential market manipulation through hidden supply, stating that trading such tokens likely serves as exit liquidity for insiders.
