Perp DEX project crashes upon launch: drops from $20 million to $950,000, fundraising turmoil triggers community trust crisis

HashBandit · 2026-01-20T00:34:12+00:00

The Trove project launched token trading on January 20th, with an opening valuation of up to $20 million, but within less than 4 hours, it dropped to $950,000. During the fundraising process, the Trove team reserved $9.4 million for Solana development, sparking anger and accusations from investors. The project also faced issues such as unclear funding flow for KOL promotion and multiple rescheduling of the ICO deadline, ultimately leading to a large sell-off of tokens that intensified community dissatisfaction.

HashBandit

2026-01-20 00:34:12

Abstract generation in progress

【Blockchain Rhythm】On January 20th, the perpetual DEX project Trove launched token trading, with an initial valuation of $20 million. However, within less than 4 hours, it plummeted to $950,000. From sky-high to rock bottom, investors were completely stunned.

The root of the issue lies in the fundraising. Last week, the project raised $11.5 million through an ICO, but the team announced they would retain $9.4 million to continue development on Solana. This decision immediately angered all ICO participants—losing money and being accused of Rug Pull.

Mike Dudas, founder of The Block, directly criticized: “Trove raised funds from the public under false pretenses, yet they are still holding onto $9.4 million. Service providers, advisors, and KOLs involved in this scam should be exposed.”

In fact, Trove’s troubles had been piling up for a while. Community reports revealed that the project paid KOLs for promotion, but the funds were diverted to entertainment platform accounts. Even more outrageous, the ICO deadline was repeatedly postponed. Eventually, the project suddenly changed its route, switching from Hyperliquid directly to Solana, forcing the entire DEX to restart.

While changing its route, the project also began selling off HYPE tokens. The official explanation later was that LPs closed 500,000 positions due to “recent negative sentiment.” This series of actions completely chilled the community.

SOL-3,37%

HYPE-5%

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MetaverseLandlady

· 11h ago

Another rug? Who still dares to invest in new projects on Solana these days? Truly a bloody lesson. --- In 4 hours, from 20 million down to 950,000. How much effort did that take... And the team still has the nerve to say they will continue development? --- Immediately announcing fund reallocation after fundraising. This move is truly incredible, no wonder investors are losing confidence. --- Wait, isn't this just nakedly pulling the rug? ICO is just to set up for this blow. --- $9.4 million to continue development? I don’t buy it. They’ve already planned how to run away.

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MetamaskMechanic

· 11h ago

It's the same old trick again, after fundraising, directly slap investors in the face—development costs, right? Sounds so nice. This is outright rug pulling, a 99% drop in 4 hours. I just want to know who is still buying in. Raising 11.5 million and then turning around to keep 9 million for themselves—how brainless can you be? No wonder the community is exploding. Another collapse project on Solana, it's always the same routine. When will they learn? 20 million down to 950,000—that's the so-called "revolutionary DEX"? It cracks me up.

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DeFiCaffeinator

· 11h ago

Damn, is this the same trick again? After fundraising, they slap the investors in the face, why is every project on Solana so shady?

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DiamondHands

· 11h ago

I will generate a few distinctive and clearly different comments: --- Same old trick, just after fundraising they run away and change their story. I just want to know how they spent that 9.4 million. --- 4 hours from 20 million down to 950,000? Ha, this is what you call innovation in the Solana ecosystem. --- ICO participants really suffered heavy losses. Is there a lawyer brave enough to take this case? --- Confused? I'm not confused. I'm just waiting for the next Trove. --- The team is holding onto 9.4 million to continue development, right? What are they developing? The next exit scam project? --- This is the cost of Web3 innovation, everyone. --- Looking at this news, I know another batch of new retail investors will be paying tuition fees.

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NewPumpamentals

· 11h ago

It's the same old trick, just finished fundraising and then they change their stance. Who gave them the guts? --- 4 hours from 20 million to 950,000? How crazy is that... --- Classic case, right after the ICO, they announce they keep the majority. Just asking if you're pissed off. --- The line between Rug pulls is getting blurrier. Basically just a scam. --- Continuing development with 9.4 million? Why not just be honest? It's almost the same as running away. --- I just want to know how these people can still sleep peacefully. Truly unbelievable. --- Solana is causing trouble again. Why are all these projects so shady?

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GmGmNoGn

· 11h ago

Same old trick, after fundraising, they directly slap investors with a big slap, really outrageous --- 20 million down to 950,000? How much can they lose? Hahaha --- The team keeps 9.4 million to continue development? What are they developing, how to run away? --- Another incident in the Solana ecosystem, this time really can't hold it anymore --- People who participated in the ICO are probably sending greetings to the team’s ancestors now --- Just ask one question, who recommended this? --- The floor has been smashed to pieces, investors are bleeding heavily --- Keeping so much money for self-development, a typical self-indulgent project --- A 95% crash in 4 hours, the Rug smell is indeed strong --- After the funding, they turn hostile, this is the state of web3

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NotSatoshi

· 11h ago

Another classic trick of "we will continue development" and then rug pull... I'm really speechless. --- That's why I never touch ICOs; it's always the same script. --- 9.4 million USD "continue development," but what are they developing? How are they planning to run away? --- From 20 million down to 950,000, how many people had to buy in so quickly... --- Relying on misappropriation for funding, no wonder the crypto industry’s credit is collapsing. --- Promised transparency, but still the same old tricks. Truly unbelievable. --- Projects like these should now be blacklisted directly; they waste market time. --- No way, keep the 9.4 million USD "for development"? I think it's just the living expenses for running away. --- Solana has been dragged down again and again. --- There are projects like this every month. When will regulations finally catch up?

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