Key Highlights
Trove Markets, a crypto startup building a decentralized perpetual exchange focused on collectibles, is facing growing backlash after abruptly pivoting away from Hyperliquid to Solana, despite raising millions from backers under a Hyperliquid-based roadmap.
The move has triggered refund demands, allegations of token dumping, and a broader debate around transparency in early-stage DeFi projects.
On Friday, Trove Markets made its first announcement of switching to Solana in a post on X, which surprised many investors. It was already a Hyperliquid-native decentralized perpetual (perps) exchange, constructed using the HIP-3 framework of Hyperliquid.
That framework requires projects to stake a large amount of HYPE tokens as a slashable bond to launch a perps market.
According to one of Trove’s builders, known as “Unwise,” the pivot followed the withdrawal of 500,000 HYPE tokens by a liquidity partner, tokens that were critical for the planned Hyperliquid integration.
“This changes our constraints,” the builder said, adding that Trove would now rebuild the perps exchange on Solana from scratch. The announcement came just days after Trove completed a TROVE token sale between January 8 and January 11, raising more than $11.5 million.
The token generation event (TGE), originally expected sooner, has now been pushed to January 19 at 4:00 pm UTC. Trove said it needs more time due to the Solana transition and refund processing.
In addition to the pivot, Trove is also being questioned for its on-chain activity related to HYPE tokens. ZachXBT, a blockchain researcher, and the Hyperliquid News X account identified a number of transfers associated with Trove wallets based on data provided by Hyperliquid explorer Hypurrscan.
Reports claim that wallets associated with the project sold nearly 194,000 HYPE tokens, worth around $10 million, within a 24-hour period.
These tokens were originally acquired as part of a $20 million raise in November to meet Hyperliquid’s mandatory HIP-3 staking requirement. Although the Founder of Trove supposedly insisted he did not control one of the wallets in question and demanded it to be closed, it is reported that sales went on minutes later.
This sequence intensified speculation around insider selling or compromised wallet access, further damaging investor confidence. Community reaction has been swift and vocal. Several X users have demanded full refunds, arguing that they invested specifically in a Hyperliquid-based product.
It has been questioned by others whether it is possible to refund in case a large share of the HYPE stake has been sold off.
Also Read: Hyperliquid Surges Past Tron and Solana to Lead Blockchain Fees
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