Trove Investors Furious After Team Keeps $9M as Token Tanks

Introduction

Crypto project Trove Markets has sparked renewed controversy after revealing a strategic pivot away from its Hyperliquid integration toward building on Solana. The move comes on the eve of a token generation event and follows a liquidity partner withdrawing a substantial portion of Hyperliquid tokens. Investors have pressured the team for refunds as Trove recalibrates its roadmap, raising questions about early-stage token launches and the path to a functional product.

Key Takeaways

• Trove pivots from Hyperliquid to Solana after a liquidity partner withdrew 500,000 Hyperliquid tokens.
• Approximately $9,397,403 will be retained to develop a perpetual DEX on Solana.
• The TROVE token plunged roughly 95% within minutes of launch, eroding investor confidence and market cap.
• Refunds totaling over $2.44 million were issued to participants, with an additional $100,000 slated for ICO participants.

Tickers mentioned:

Tickers mentioned: $HYPE

Sentiment

Sentiment: Bearish

Price impact

Price impact: Negative. The pivot and the sudden token decline have weighed on investor confidence and the token’s price trajectory.

Trading idea (Not Financial Advice)

Trading idea (Not Financial Advice): Hold. Given the pivot, investors may wait for clearer milestones and execution signals before re-entering any position.

Market context

Market context: The episode reflects heightened risk in crypto projects undergoing rapid pivots post-funding, underscoring the volatility around token launches and the importance of transparent deliverables in DeFi tooling.

TROVE token sinks 95% after TGE

Frustrations intensified as the newly launched TROVE token declined more than 95% to about $0.0008 within minutes of its token generation event, erasing a substantial portion of its implied market value. Data on DexScreener show the market cap collapsing from approximately $20 million to under $1 million in a short span.

Source: Bubblemaps

Blockchain analytics firm Bubblemaps reported that one entity appeared to receive about 12% of the token supply via 80 fresh wallets funded from a non-custodial exchange, ChangeHero. Bubblemaps cautioned that there is no evidence tying these clusters to the Trove team, highlighting the opacity that often surrounds token distributions in early-stage launches.

Trove assures they’re in it for the long haul

Despite the turmoil, Trove Market’s communications maintained a defiant cadence. The team asserted that they are “not going anywhere” and that they are not “taking the money and running.” They emphasized that the current pivot is a pathway to delivering a usable product, with progress measured through execution rather than rhetoric. The project said it would “earn trust back through execution” as it advances its roadmap.

In a broader sense, Trove signaled an intent to narrow its focus to a robust perps trading experience anchored in collectibles, including Pokémon cards and Counter-Strike 2 skins. Industry observers have noted that such niche collateral markets could, in aggregate, constitute a multi-billion-dollar opportunity if liquidity and risk controls align. Notably, Bitwise had forecasted in September that digital collectibles could mount a sizable market, underscoring a potential long-tail in niche-tokenized assets.

Cointelegraph reached out for comment but did not receive an immediate response from Trove at the time of publication.

This article was originally published as Trove Investors Furious After Team Keeps $9M as Token Tanks on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.