Trove Keeps $9.4M for Solana Pivot; Investors Demand Refunds

Trove Markets pivots to a Solana perpetual DEX, keeps $9.4M as TROVE token collapses 95%

  • Trove Markets will keep about $9.4 million of an over $11.5 million raise and pivot from Hyperliquid to building a perpetual DEX on Solana.
  • A team member, Unwise, blamed the pivot on a liquidity partner withdrawing 500,000 HYPE tokens, which disrupted the planned Hyperliquid integration.
  • The project refunded roughly $2.44 million to some participants and plans an additional $100,000 return to initial coin offering participants.
  • The newly launched TROVE token dropped over 95% to $0.0008 minutes after launch, cutting its market cap from about $20 million to under $1 million, data shows.
  • Blockchain analytics firm Bubblemaps found one entity received 12% of the token supply via 80 wallets funded from ChangeHero but found no evidence linking those clusters to the team.

Trove Markets announced it will retain most funds raised for a Hyperliquid integration and instead focus on building a perpetual decentralized exchange on Solana, saying this is the only viable path to keep the product alive, as stated in a post on their account. The team made the pivot public on Friday, just days before the token generation event, after raising over $11.5 million for the original plan.

- Advertisement -

A project builder known as Unwise blamed the change on a liquidity partner withdrawing 500,000 Hyperliquid (HYPE) tokens, which the builder said undermined the Hyperliquid integration; the comment is available on their post. Trove said it will keep roughly $9.4 million from the total raise to continue development and cover costs tied to engineering, a chief technology officer, advisors, marketing, and operations, as explained in the same announcement.

The team also said it refunded more than $2.44 million to some investors “as part of cleaning up participation and protecting distribution integrity,” and that an additional $100,000 will be returned to initial coin offering participants, per the post. Critics on X reacted angrily, with one calling the move the “Biggest scam in crypto ATM,” shown in a comment linked on their thread.

Market response was severe: the TROVE token fell more than 95% to $0.0008 within ten minutes of launch, reducing its market cap from about $20 million to under $1 million, according to DEXScreener data. Blockchain analytics firm Bubblemaps reported one entity received 12% of the token supply through 80 new wallets funded from ChangeHero but said it found no evidence connecting those clusters to the Trove team; see the data and analysis.

Trove maintained it is committed to building and to regaining trust, writing that the team “are not going anywhere” and stating, “We can’t reverse every cost already incurred, but we can keep building, and deliver the perp DEX for collectibles.” The project plans to focus its perps trading experience on collectibles like Pokémon cards and Counter-Strike 2 skins.

- Advertisement -

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

Dollar Could Fall 10% on Aggressive Fed Cuts

State Street strategists warn the US dollar could fall up to 10% if the...

Aave DAO mulls conflict-of-interest rules for voting.

Aave DAO is voting on a new conflict-of-interest policy requiring funded recipients to disclose...

Tesla Semi Priced $290,000 for 500-Mile Version

Tesla is reportedly quoting $290,000 for its 500-mile Long Range Tesla Semi, a substantial...

X’s $1M contest winner exposed as alleged crypto scammer

X (formerly Twitter) awarded its $1 million Creators competition prize last week to user...

Coinbase Stock Target Slashed As Earnings Loom

JPMorgan analyst Ken Worthington slashed his price target on Coinbase (COIN) to $290 from...

Must Read

8 Best Bitcoin Offshore Hosting Providers

In this blog post, we'll list the top 8 best bitcoin offshore hosting providers that accept Bitcoin and other cryptocurrencies.As Bitcoin continues to grow...
🔥 #AD Get 20% OFF any new 12 month hosting plan from Hostinger. Click here!