Trove Markets recently drew attention in the crypto space after positioning itself as a specialized, decentralized perpetual exchange for trading non-traditional assets such as collectibles, real-world assets, and prediction markets. Trove Markets soon announced that it would launch its token through an ICO. Trove initially described its platform as being built natively on Hyperliquid, which shaped investor expectations and drove strong demand for the token sale. However, the ICO process drew early criticism after the team repeatedly changed and reversed the fundraising deadline.
The ICO, which ran from January 8 to January 11, 2026, targeted $2.5 million but raised approximately $11.5 million due to oversubscription. Participants expected pro rata refunds for excess funds, as outlined in the team's ICO overview post.
However, controversies emerged during the ICO. The team briefly extended the sale deadline by five days, only to reverse the decision hours later, citing a mistake. After the ICO concluded, the team announced it was “retaining $9,397,403 to continue building a perp DEX on Solana,” completely disregarding its earlier $2.5 million target.
Abrupt Pivot to Solana
In line with plans to launch on Hyperliquid, the team staked 500,000 $HYPE tokens as a security bond, securing a liquidity partner for this requirement. On January 16, Trove announced it would abandon Hyperliquid and rebuild its entire perpetual exchange on Solana.
The team attributed the decision to the liquidity partner's liquidation of its 500,000 $HYPE position, which altered the economic constraints of remaining on Hyperliquid. Trove said the partner acted independently and cited negative market sentiment as the reason for the withdrawal.
For many contributors, the explanation failed to address the core concern. Investors had funded a Hyperliquid native project, not a Solana rebuild. The sudden change undermined the ICO's original thesis and sparked immediate backlash across social platforms. At the same time, onchain data showed wallets associated with Trove selling $HYPE tokens, adding to the perception that the pivot favored insiders over contributors.
Blockchain analyst ZachXBT questioned the team on X about bridging $45,000 from the angel round to a casino deposit address on January 11, 2026.
Token Launch and Market Reaction
$TROVE began trading on January 19, opening at an FDV of roughly $20 million. Within minutes, heavy selling pressure pushed the valuation sharply lower. The token fell by about 95% in under an hour, leaving its fully diluted valuation below $1 million. Reports from traders indicated that Trove seeded only roughly $500,000 in initial liquidity.
At the time of writing, the token is trading at a market cap below $400,000. For ICO participants, the rapid drawdown translated into immediate and substantial losses. Many view the event as a “complete rug.”
Investigators and community members also raised concerns about fund flows. Some influencers acknowledged receiving compensation but admitted they did not clearly disclose the relationship at the time.
These revelations raised questions about KOLs promoting crypto projects without proper disclosure, which has seemingly become a norm in the crypto ecosystem. A number of observers have become vocal about the practice and have called for social media users to block any KOL found to have promoted the $TROVE ICO.
Investors Experience Significant Losses
Several ICO participants have taken to social media to detail the losses they incurred following their investments.
An investor revealed they lost about $125,000 after participating in the $TROVE ICO.
Another trader reported receiving just $100 in returns from an initial $10,000 investment
Elsewhere, a social media user shared a screenshot showing an unrealized loss of $71,000 from purchasing $TROVE tokens.
Community Response and Call for Lawsuit
The fallout triggered calls for accountability. Blockchain analyst ZachXBT posted a photo from a Token2049 side event in October 2025, highlighting an individual believed to be the pseudonymous founder, unwisecap, of Trove Markets, amid widespread scam allegations.
Community members demand full refunds and transparency, with some threatening legal action against KOLs and the Trove team.
Burwick Law, a law firm that previously took legal action against the Solana launchpad pump.fun, announced it was reviewing potential claims related to the $TROVE sale.
Team members from Legion and Jupiter, respectively, noted that the Trove team had reached out to them about launching the $TROVE token on their ICO platforms, but they declined the proposal.
@D0itdifferent, co-founder of Legion, criticized the situation as another example of information asymmetry in crypto fundraising, where retail participants rely heavily on trust rather than verifiable safeguards.
The Trove team has not publicly responded to the situation, going totally silent since announcing the token launch, leaving the events surrounding the ICO to shape how the market views the project.
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