Perpetual Contract Protocol TroveMarkets exposed issues right after launch. The project completed fundraising with a valuation of $20 million FDV, which sounds pretty good, but its performance after going live was shocking—only an additional $500,000 in liquidity.

What’s more concerning is the token distribution. The project team released about 15 million TROVE tokens all at once. The result? A large number of new wallets received between 5 million and 10 million tokens, then immediately sold them off. Single transactions ranged from $30,000 to $84,000, with no hesitation.

This pattern closely resembles early project fundraising tactics: high valuation fundraising → liquidity shortage → token oversupply → quick cash-out. On-chain analyst Specter bluntly stated that Trove has a tendency to become a project similar to "2026" (note: incomplete in the original). In other words, this is likely another cautionary example of a liquidity trap and token distribution imbalance. For participants, this is a risk signal worth paying attention to.