Trove Token Listed on Exchange, Trading FDV Drops to Less Than $1 Million, ICO Participants Suffer Heavy Losses

Trove’s TROVE token launched trading on its Perp DEX at 4 a.m. ET on January 20—opening with a $20 million fully diluted valuation (FDV) that’s now plummeted to roughly $950,000. Last week, the project raised $11.5 million via an ICO, announcing it would retain $9,397,403 to build its Solana-based Perp DEX. That move sparked fierce community backlash: ICO participants are facing steep losses and accusing the team of a rug pull. The Block founder Mike Dudas weighed in: “After raising funds from the public on false pretenses, Trove still holds $9.4 million in ICO proceeds. Any service providers, advisors, KOLs, or other parties who received funds from this scam should be exposed and condemned.”

Trove has faced prior controversy, too: The community has flagged claims that the project paid KOLs for promotion (with funds flowing to an entertainment platform’s deposit address) and repeatedly changed its ICO deadline. Additionally, the team abruptly scrapped its Hyperliquid integration to rebuild the Perp DEX natively on Solana—while also selling off HYPE tokens. In response to outrage, officials said liquidity providers (LPs) closed a 500,000 HYPE position due to “recent negative sentiment,” shifting the project’s trajectory.

Trove, a perpetual DEX for collectibles and real-world assets (RWA), is facing allegations of misleading marketing and insider trading. The project raised $11.5 million during its initial coin offering (ICO), but controversy arose after the sale was extended and then canceled. On-chain data reveals pre-announced trades, while the team is allegedly reported to have sold half of its HYPE tokens quickly and paid key opinion leaders (KOLs) for promotional support. The fear and greed index remains highly volatile as the project approaches its token generation event (TGE) on January 20.

Why Did This Happen?

Trove first announced the surprise move to Solana in a post to X on Friday, with one of Trove’s builders, “Unwise,” later blaming the pivot on a liquidity partner withdrawing 500,000 Hyperliquid (HYPE) tokens needed for the Hyperliquid integration. “This changes our constraints: we’re no longer building on Hyperliquid rails, so we’re rebuilding the perp DEX on Solana from the ground up,” Unwise wrote. According to reports, the move sparked strong community backlash.

Trove plans to focus its perps trading experience on collectibles such as Pokémon cards and Counter-Strike 2 skins — a market that Bitwise projected in September could grow into a $21.4 billion industry. However, the shift has raised concerns about transparency and accountability, particularly among investors who contributed to the project under the expectation of a Hyperliquid integration. TradingView reported that the sudden pivot has led to strong community backlash.

How Did Markets Respond?

Trove’s token and Perp DEX were deployed on Solana instead of Hyperliquid, sparking strong community backlash. On January 19, Perp DEX Trove announced last week that after raising $11.5 million via an ICO, it will shift its TROVE token and perpetual contract DEX platform from Hyperliquid to Solana—backtracking on its earlier plan shared with participants. Trove noted a liquidity partner that had backed its Hyperliquid deployment opted to liquidate a 500,000 HYPE position; the move was the partner’s independent call but altered the project’s constraints. According to on-chain data, the shift has sparked strong dissatisfaction in the community.

The sudden shift has sparked strong dissatisfaction in the community, particularly among ICO backers who’d expected the project to launch on Hyperliquid and stay tied to the HYPE ecosystem. Several users on X have demanded immediate refunds, arguing that contributors backed a Hyperliquid-based product, not a Solana-native one. “People did not invest in your ICO for you to launch on Solana,” one user wrote, while others urged Trove to return funds and relaunch under revised terms. Backers have reportedly demanded immediate refunds.

What Are Analysts Watching Next?

Trove is now under scrutiny for how it handled the transition from Hyperliquid to Solana, as well as its management of ICO proceeds. Blockchain investigator ZachXBT has flagged several Trove-linked transfers into casino deposit addresses involving HYPE tokens, raising further concerns about the project’s governance and liquidity management.

The project’s website states that the token is deployed on Solana with a total supply of one billion tokens, 70% of which are allocated to a reserve excluded from circulating supply. While the team has cited unnamed partners in its liquidity actions, it has yet to publish a detailed breakdown, leaving questions about oversight and accountability unresolved. According to reports, the project has faced allegations of misleading marketing and insider trading.

Trove will have its Token Generation Event (TGE) at 1 AM Beijing Time on January 20th. According to the market data on Polymarket, the TROVE token has a 90% probability of trading below its presale valuation. This uncertainty has led to increased calls for regulatory scrutiny, especially as the project had previously claimed to comply with the EU’s MiCA regulations. Market analysis indicates the token has a 90% probability of trading below its presale valuation.

The situation remains fluid, with investors and analysts closely watching for further developments. The project’s ability to rebuild trust and execute on its revised roadmap will be key factors in determining its future success.