Trove Markets fallout deepens after token crashes post-launch

The fallout from Trove Markets’ launch has escalated sharply since its token generation event, with the project now facing widespread accusations of a rug pull after its newly issued token collapsed in price.

TROVE, the protocol’s native token, launched on Solana after several reported delays and quickly plunged by more than 95%, according to Coingecko data. The fully diluted valuation fell from around $20 million implied by the public sale to well under $1 million within minutes of trading. Liquidity pools were also left thin shortly after the debut, amplifying losses for early buyers.

TROVE crashes 95% after launch | Image: GeckoTerminal

The sharp move has compounded anger that had already been building around Trove’s $11.5 million public token sale earlier this month.

As previously reported by The Block, the sale was marketed around an expected deployment on Hyperliquid, only for last-minute changes to spill into prediction markets and spark backlash.

Days later, the team announced an abrupt pivot to Solana, citing the withdrawal of 500,000 HYPE tokens by a liquidity partner — a move Trove said made it impossible to proceed under Hyperliquid’s staking requirements. Following the TGE, Trove confirmed it would retain roughly $9.4 million of the funds raised and initiate partial refunds amounting to a fraction of the total sale proceeds.

Crypto community rug pull claims

The limited scope of those refunds fueled further outrage among participants who say the material roadmap change warranted a full return of capital.

Multiple users on social media have since accused the project of misusing funds and misleading investors. Allegations circulating on X include claims that sale proceeds were bridged through mixers, off-ramped to centralized exchanges, and used for undisclosed influencer promotions.

Blockchain investigator ZachXBT publicly questioned a $45,000 SOL transfer from Trove’s angel round to an address linked to a casino deposit, asking the team to explain the transaction.

Trove has disputed characterizations of the episode as an exit scam and has said user funds remain accounted for, while maintaining a public beta of its perpetuals exchange amid controversy surrounding its token launch. “Trove is not disappearing. We are not ‘taking the money and running.’ We are still building,” the team stated as doubts and mounting concerns circulated.

The Block reached out to Trove Markets for additional comment.

Trove Markets was incubated by Paradigm and raised $35 million in 2021 at a reported valuation of $400 million, according to prior reporting by The Block.

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