Solana Pivot Backfires as TROVE Token Dumps 95% Post-TGE

Trove Markets’ sudden shift to the Solana blockchain has sparked strong backlash from investors following its $11.5 million token sale. Initially, the project had promised a decentralized perpetual exchange for niche assets, such as collectibles, on the Hyperliquid network.

However, just hours before the token generation event, the team changed blockchains after a liquidity partner withdrew the required 500,000 $HYPE stake.

As a result, the team relaunched the TROVE token on Solana, but it quickly plummeted by over 95% within minutes. Community frustration is focusing on the retained funds and perceived breaches of trust, fuelling demands for full returns or even class-action threats.

The Hyperliquid Exit and Solana Switch

Trove Markets built its platform using Hyperliquid’s infrastructure from the beginning. To safely launch perpetual futures markets, Hyperliquid required a stake of 500,000 $HYPE tokens, which were worth about $12.5 million at that time. The stake serves as a deterrent to builders’ bad behavior. To facilitate the process, a liquidity partner provided this stake for Trove’s launch.

However, recent changes in market sentiment led the partner to withdraw the entire 500,000 HYPE token holding. The withdrawal cut off Trove’s access to Hyperliquid’s services, forcing the team to rebuild the decentralized exchange (DEX) on Solana from scratch, since it believes the exchange’s performance aligns with its vision.

This decision delayed the token generation event originally scheduled for January 19, as Trove rescheduled it later that day to handle the transition and process partial refunds. Meanwhile, investors who took part in the sale from January 8 to 11, which aimed to raise $2.5 million but ended up collecting $11.5 million, expressed frustration.

Solana Shift Crashes Amid Refund Disputes

Subsequently, TROVE launched on Solana-based DEXs such as Meteora, with a market capitalization of nearly $20 million. However, things turned negative as soon as trading began due to increased selling pressure. The token lost more than 95% of its value in just minutes, dropping to about $0.0007 and bringing its market value down to under $1 million. Thin liquidity exacerbated price swings for early investors.

Members of the community have requested full refunds, asserting that the ICO was initially promised under Hyperliquid’s guidelines. Additionally, allegations of undisclosed payments to key influencers have further eroded trust in the project, leading the community to label it a sham. 

Meanwhile, Trove has announced that it will continue rebuilding its reputation on Solana. However, specific goals for this process have not yet been disclosed.

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