Crypto: Trove Backlash Grows After Team Retains $9.4m, New Token Drops 95%...

Trove shocked the community last week with a last-minute decision to pivot its perps DEX from Hyperliquid to Solana, a move that upset many of its initial backers.

Trove Markets has reignited backlash from investors after confirming it will retain roughly $9.4 million from a token sale originally tied to a planned integration with Hyperliquid, despite pivoting its perps DEX to Solana just days before its token launch.Vocal critics on X accused the team of breaking fundraising expectations after Trove said the retained funds would now be used to continue development on Solana, rather than returning the bulk of capital raised for the Hyperliquid build.

Trove had raised over $11.5 million for a token sale tied to its integration on Hyperliquid, but announced on Friday, just days before its token generation event, that it will pivot to building on Solana.

One of Trove’s builders, “Unwise,” later blamed the pivot on a liquidity partner withdrawing 500,000 Hyperliquid (HYPE) tokens needed for the Hyperliquid integration, with dozens of Trove investors demanding refunds since the sudden change in direction.

“From the total raise, we will retain $9,397,403 to continue building a perp DEX on Solana,” Trove said on Monday, explaining that it is the “only path that keeps Trove alive as a real product.”

Trove said it has spent some of those funds, or plans to spend those funds, on a developer team for frontend and backend infrastructure, a chief technology officer, an advisory team, and marketing and operating expenses.

However, Trove said over $2.44 million was refunded to investors “as part of cleaning up participation and protecting distribution integrity,” while another $100,000 will be refunded to participants in the initial coin offering.

“How can you build a perp dex when you can't even do an ICO competently. Biggest scam in crypto ATM,” one of the critics said on X.

Frustrations intensified after its newly launched TROVE token fell more than 95% to $0.0008 just ten minutes after launching, shaving its market cap from $20 million to below $1 million, DEXScreener data shows.

Data from blockchain analytics platform Bubblemaps shows one entity received 12% of the token supply via 80 fresh wallets funded from non-custodial crypto exchange ChangeHero.

Source: CoinTelegraph