Trove Markets retained $9.4M of an $11.5M ICO and shifted development from Hyperliquid to Solana, triggering a sharp market collapse that wiped out the token’s value for many backers. The move has prompted investor outrage, refund demands and threats of legal action, raising immediate questions about governance and fund use.
Trove Markets shocked investors after it decided to pivot its planned decentralized perpetual exchange (DEX) from Hyperliquid to Solana just days before its token launch, while choosing to retain roughly $9.4 million of the $11.5 million raised in its ICO rather than returning the funds under the original terms.
The sudden change in strategy immediately sparked frustration among contributors, many of whom demanded refunds and accused the team of poor governance and possible misconduct, as the project had raised funds under a different technical promise.
When the TROVE token finally launched, it plunged about 95% within minutes, wiping out nearly all of its market value and dropping from an expected valuation of around $20 million to under $1 million.
This severe crash intensified investor outrage, with community members raising concerns about transparency, the handling of funds, and whether the project’s abrupt shift constituted a “rug pull.” Many are exploring legal action and broader questions about how token sales should disclose changes in plans and manage collected capital.
Investor response and legal implications
Backers have accused Trove of a “rug pull” and are demanding refunds; some are exploring class‑action suits. The rhetoric is strong: investors describe the retention of funds raised under one technical premise and redeployment to another as a breach of trust.
The situation raises immediate compliance questions for token issuers and intermediaries: disclosure of planned chain migrations, explicit allocation rules for ICO proceeds, and custody controls over raised funds. Those points will figure prominently if legal proceedings advance.
Looking ahead, Trove’s mainnet is slated for February 2026 on Solana, a date that will test whether the team can restore liquidity and regain any investor confidence. Meanwhile, market participants and regulators will be watching refund demands and any legal filings closely, as outcomes could influence how future token sales document fund use and partner dependencies.
