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Trove Markets, a planned decentralized perpetuals exchange for collectibles like Pokémon cards and CS2 skins, launched its TROVE token on Solana on January 20, 2026, but the value plummeted 95% within 15 minutes, dropping fully diluted valuation from $20 million to $1 million and prompting accusations of a rug pull from investors who lost millions in the project’s $11.5 million ICO.
The launch followed a last-minute pivot from Hyperliquid to Solana, announced hours before the token generation event (TGE). The team had raised funds on a Hyperliquid premise, acquiring 500,000 HYPE tokens for HIP-3 deployment, but blockchain data from Hyperscan shows they began dumping HYPE on January 19.
One investor shared their experience on X, explaining that their $20,000 commitment, part of a larger pool exceeding $9 million, should have returned approximately $14,000 in USDC plus $6,000 worth of TROVE tokens. Instead, after the token’s catastrophic collapse, they received only $600 in total, one of many severe losses faced due to the project’s rapid failure.
Blockchain investigator ZachXBT flagged $45K bridged from Trove’s angel round wallet on January 11, 2026, to a casino deposit address, with speculation that funds went to gambling-related influencers. The Trove team suggested the transfers were by @_TJRTrades, a crypto personality known for gambling content, but many users rejected the explanation, citing the use of overt promotions without full disclosure.
The Hyperliquid News account called out the undisclosed promotion as particularly problematic, stating: “What’s really messed up is that this KOL didn’t even add an ad tag or warn users.” They added that while accepting paid promotions isn’t necessarily wrong, failing to disclose them makes it easy to overhype a project and lead the community into losses, especially in cases like Trove where investors suffered significant damage.
These are all the people responsible for making a scam project look legitimate for few thousand dollars. Never forget them.$Trove $HYPE pic.twitter.com/GF6cbUofsC
— 0xfinance (@0xfinance) January 19, 2026
Influencer Meteversejoji (Joji), one of several accused of undisclosed promotions, posted a statement claiming his team invested in October without proper due diligence and was not informed of the Solana pivot.
“I honestly didn’t DD this enough, as I saw a board of big guys and just thought that would be enough… The influencer admitted in a follow-up post that he failed to properly research the project, assuming the involvement of prominent backers was sufficient vetting. He expressed regret for potentially leading others into the investment, adding that he too had been misled and suffered losses alongside the community.
Community backlash has escalated, with calls for a class action lawsuit against the anonymous team for misleading investors and potential misuse of funds.
The incident highlights risks in pre-launch ICOs, where sudden pivots and undisclosed promotions can unfairly blindside contributors. Trove’s switch prevented refunds for Hyperliquid-based investors, funneling activity to Solana where the team retained control.
For investors, Trove’s collapse further shows the dangers of anonymous teams and pre-launch fundraising. The abrupt pivot to Solana after raising on a Hyperliquid promise not only eroded trust within the community but potentially violated implied commitments, leaving contributors with minimal recourse.
The casino transfers and undisclosed promotions also fuel speculation of insider enrichment, but without concrete evidence, it’s a reminder to demand transparency in endorsements and fund usage. Balanced against this, the incident could push platforms like Hyperliquid to tighten vetting for projects, reducing rug risks.
Users are better off treating high-FDV launches with skepticism, as real value comes from shipped products, not hype. If a potential class action gains traction in this case, it may set a precedent for accountability in DeFi, but whether that happens will hinge on the anonymity veil coming off.
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