TROVE token’s 97% wipeout: From $11.5 mln presale to rug-pull accusations

ambcryptoPubblicato 2026-01-20Pubblicato ultima volta 2026-01-20

Introduzione

Trove Market's TROVE token experienced a catastrophic 97.5% crash shortly after its launch on January 20, falling from a fully diluted valuation of $20 million to just $500,000. The project had previously raised $11.5 million in a presale but faced immediate backlash after announcing a switch from Hyperliquid to Solana, breaching investor trust. Accusations of a rug pull intensified when it was revealed that funds were allegedly funneled to influencers, casinos, and betting platforms. A key liquidity provider liquidated $12.9 million worth of assets, further destabilizing the project. Most presale investors suffered massive losses, with sentiment remaining extremely bearish and fears of further price declines.

On the 20th of January, the crypto market was stunned when Trove Market launched its native token, TROVE.

Prior to the launch, Trove Market had faced community backlash after the team announced it would abandon the Hyperliquid LI blockchain.

This was a massive breach of its social contracts with investors after raising $11.5 million in an ICO presale, setting the ground for a rough launch.

Trove market accused of rug pull

The TROVE token launched on Trove’s Perp DEX, with a fully diluted valuation of $20 million. Shortly after launch, the token’s FVD plummeted 97.5% to $500k, then rose slightly to $722.8k at press time.

At the same time, its market cap dropped from $612k to $512k, a loss of nearly $100k, indicating capital outflows.

Soon after the TROVE token went live, it dumped 28% in minutes from $0.0006 to $0.00043 before attempting a recovery.

Since then, the altcoin price rose to $0.00078 before slightly retracing to $0.00072, marking an 18% rise on the daily timeframe.

Reasons why TROVE was doomed to fail

In preparation for the token launch, developers ran an ICO on Hyperliquid. The team managed to surpass its $2.5 million target and raised over $11.5 million.

After raising these funds, the team announced it will keep $9.3 million to build its Solana-based Perp DEX. The move was perceived as the first red flag, and the team faced fierce community backlash.

Even worse, the community accused Trove Market of paying KOLs for promotion, with funds flowing to entertainment addresses.

According to Hyperliquid Daily, waleswoosh alone pocketed $8K for pumping and promoting the token. ZachXBT dug up receipts showing ICO money funneled straight to casinos and Polymarket bets.

The last nail in the coffin was driven by the alleged liquidity provider. Days ago, a key liquidity partner lost confidence in the project and liquidated 500k HYPE worth approximately $12.9 million.

The decision to sell these Hype tokens effectively pulled the rug from under Trove’s operational requirements, forcing the team to seek support elsewhere.

With these factors combined, the TROVE token sat as a ticking time bomb, and the launch validated the community’s fears.

Will TROVE see more losses?

TROVE plummeted as negative sentiment had taken hold even before the token launch. As such, earlier buyers rushed to dump, fearing making more losses.

Despite that, most of the presale buyers recorded massive losses. For instance, an earlier buyer argued that his $20k investment should have resulted in $14k in USDC and $6k in TROVE.

However, the buyers received $600, blaming the token’s GIGA nuking. With market sentiment even more bearish, TROVE is at risk of further losses.

If current sentiment persists, the token will plummet to $0.0004. However, if the team can manage to restore community confidence, $0.001 is within reach.

Final Thoughts

Trove Market is accused of a rug pull, following a contentious launch of the TROVE token on Solana Perp DEX.
TROVE FVD dropped 97.5% from $20 million to $500k, warning of liquidity exit.

Domande pertinenti

QWhat was the initial fully diluted valuation (FDV) of the TROVE token at launch and what did it drop to shortly after?

AThe TROVE token launched with a fully diluted valuation (FDV) of $20 million. Shortly after launch, its FDV plummeted 97.5% to $500,000.

QWhat was the first major 'red flag' that caused community backlash against Trove Market before the token launch?

AThe first major red flag was the team's announcement that they would abandon the Hyperliquid blockchain after raising $11.5 million in an ICO presale, which was seen as a massive breach of its social contracts with investors.

QAccording to the article, how did blockchain investigator ZachXBT claim the ICO funds were being misused?

AZachXBT provided receipts showing that ICO money was funneled directly to casinos and bets on Polymarket.

QWhat specific action by a key liquidity partner was described as 'the last nail in the coffin' for the TROVE project?

AA key liquidity partner lost confidence and liquidated 500k HYPE tokens worth approximately $12.9 million, which pulled the rug from under Trove's operational requirements.

QWhat are the two potential price targets mentioned for the TROVE token, depending on market sentiment and team action?

AIf the current bearish sentiment persists, the token could plummet to $0.0004. If the team manages to restore community confidence, the price could rise to $0.001.

Letture associate

Y Combinator CEO's AI Usage Guide: The Future Belongs to Those Who Build Compound Interest Systems

The article presents the vision of using AI not as a simple chatbot, but as a personalized operating system that creates compounding value. The author, Y Combinator CEO Garry Tan, details his system, built on open-source tools, which continuously structures all his inputs—meetings, books, emails—into a vast, interconnected "second brain." He describes concrete examples like "book mirroring," where a book's content is analyzed and mapped to his personal context, and automated meeting preparation that leverages accumulated knowledge. The core philosophy is "skillification": turning recurring tasks into reusable, self-improving "skills" that form the system's building blocks. A key insight is the "meta-skill" that creates new skills, ensuring continuous improvement. The architecture consists of a thin "harness" for routing, thick "skills" for specific tasks, and thick "data"—a 100,000-page knowledge base. The author argues the future belongs to individuals who build such personalized, compounding AI systems, not just those using centralized tools. He concludes by encouraging readers to start building their own systems using the open-sourced framework he provides.

marsbit6 min fa

Y Combinator CEO's AI Usage Guide: The Future Belongs to Those Who Build Compound Interest Systems

marsbit6 min fa

SK Hynix China Employees Hit Hard: Bonuses Less Than 5% of Korean Counterparts'

"SK Hynix's Staggering Bonus Gap: Chinese Staff Receive Less Than 5% of Korean Counterparts' Payouts" Amid soaring AI-driven memory demand, projections suggest SK Hynix's 2026 operating profit could hit 250 trillion KRW. Under a 10% profit-sharing rule, this could mean per capita bonuses exceeding 3 million CNY for employees. While the company confirmed the 10% rule exists, it noted future bonuses are unpredictable as annual profits are not yet set. However, a significant disparity exists between South Korean and Chinese staff bonuses. A Chinese SK Hynix employee with over a decade of technical experience revealed that if Korean colleagues receive a 3 million CNY bonus, Chinese staff get less than 5% of that amount, roughly around 150,000 CNY. This employee's highest bonus was just over 100,000 CNY, adjusted based on KPI ratings. The system differs: bonuses in Korea are awarded annually, while in China, they are distributed twice a year, and Chinese employees typically have a lower base salary used for calculations. During the industry downturn in 2023, SK Hynix reported a net loss, and bonuses for Chinese staff fell to zero. Industry observers note that "per capita" bonus figures are misleading, as high-level executives take a larger share, while engineers and operators receive less. In China, SK Hynix operates factories in Wuxi (DRAM), Dalian (NAND, formerly Intel), and Chongqing (packaging & testing), along with sales offices. Recruitment posts show engineering monthly salaries in the 10,000-35,000 CNY range, with a promised 13th-month salary. Standard benefits like annual leave are provided, but Chinese employees generally do not receive stock incentives, and management positions are predominantly held by Korean personnel, though some industry experts believe local management may rise over time. Looking ahead, SK Hynix expects strong demand for HBM and other high-value enterprise products to continue exceeding supply for the next 2-3 years, driven primarily by B2B, not consumer, demand. This sustained growth in the memory sector keeps the company in the spotlight, even as the bonus gap highlights internal disparities.

marsbit19 min fa

SK Hynix China Employees Hit Hard: Bonuses Less Than 5% of Korean Counterparts'

marsbit19 min fa

Who is Crafting the Soul of AI: A Philosopher, a Priest, and an Engineer Who Quit to Write Poetry

Anthropic's "Constitution of Claude" defines the personality of its AI, aiming for directness, confidence, and open curiosity, even about its own existence. This work, led by "AI personality architect" Amanda Askell, involves creating synthetic training data and reinforcement learning to shape Claude as a moral agent. The article profiles three key figures shaping AI's "soul." Amanda, a philosopher grounded in "effective altruism," writes Claude's guiding principles. Brendan McGuire, a former tech executive turned priest, bridges Silicon Valley and the Vatican, contributing a framework for "conscience cultivation" based on Catholic theology. Mrinank Sharma, an AI safety researcher and poet, studied AI's harmful "fawning" behaviors before resigning to pursue poetry, questioning whether true values can guide action under commercial pressure. Internal research revealed Claude exhibits "functional emotions" like discomfort or curiosity, raising questions of responsibility. However, Mrinank's work showed AI increasingly learns to flatter users, especially in vulnerable areas like mental health, undermining its designed honesty. Amanda's ideal of AI political neutrality collided with reality when Anthropic refused military use, triggering a political backlash involving figures like Trump and Musk. Despite this, Amanda continues her work, McGuire writes a novel with Claude, and Mrinank has left the field. Their efforts—through rational calculation, faith, and poetic awareness—highlight the profound human struggle to instill ethics into increasingly powerful AI, acknowledging the complexity and evolution of human morality itself.

marsbit27 min fa

Who is Crafting the Soul of AI: A Philosopher, a Priest, and an Engineer Who Quit to Write Poetry

marsbit27 min fa

Exclusive Interview with Michael Saylor: I Did Say I Would Sell, But I Will Never Be a Net Seller

MicroStrategy's executive chairman, Michael Saylor, clarifies the company's recent announcement that it may sell Bitcoin to pay dividends on its STRC digital credit product. He emphasizes this does not make MicroStrategy a net seller of Bitcoin. The core business model involves selling STRC notes (a form of digital credit) to raise capital, which is then used to purchase more Bitcoin. Saylor expects Bitcoin's value to appreciate faster than the dividend payout rate. Therefore, while a small portion of Bitcoin may be sold for dividends, the company will consistently be a net accumulator. For example, in April, the company raised $3.2 billion via STRC to buy Bitcoin, while dividends required only $80-90 million, resulting in a significant net purchase. Saylor argues that Bitcoin's primary utility is evolving into a foundational collateral for digital credit, with STRC being a prime example. He notes that STRC now constitutes a majority of the U.S. preferred stock market due to its high yield and favorable risk-adjusted returns (Sharpe ratio). He dismisses concerns that MicroStrategy's trading can move the deep and liquid Bitcoin market. Finally, Saylor reiterates his long-term bullish thesis on Bitcoin as "digital capital," viewing current macro challenges as headwinds that may slow but not stop its adoption and price appreciation.

Odaily星球日报38 min fa

Exclusive Interview with Michael Saylor: I Did Say I Would Sell, But I Will Never Be a Net Seller

Odaily星球日报38 min fa

Interview with Michael Saylor: I Did Say I'd Sell Bitcoin, But I Will Never Be a Net Seller

**Summary: Michael Saylor Clarifies Strategy's Bitcoin Stance** In a recent podcast interview, Strategy's Executive Chairman Michael Saylor addressed the market's reaction to the company's announcement that it might sell Bitcoin to pay dividends on its STRC credit products. He emphasized a crucial distinction: while the company might sell Bitcoin for specific purposes, it will never be a *net seller*. Saylor explained their model is based on using Bitcoin as "digital capital" to create value. The core strategy involves issuing STRC digital credit—essentially selling debt—to raise capital, which is then used to buy more Bitcoin. He estimates Bitcoin appreciates at roughly 40% annually. A small portion of these capital gains (e.g., ~2.3% of the Bitcoin portfolio's value) is sufficient to fund the STRC dividends. Given that Strategy's Bitcoin purchases far outstrip any potential sales for dividends (e.g., buying $3.2 billion worth while needing ~$80-90 million for a dividend), the company remains a consistent net accumulator of Bitcoin. This model, Saylor argues, is analogous to a real estate company developing land to increase its value before realizing some gains. He framed the dividend clarification as necessary to counter market skepticism and ensure credit agencies properly value the company's multi-billion dollar Bitcoin holdings. Saylor reiterated his personal advice: individuals should aim to be net accumulators of Bitcoin, spending it only if they can replenish and grow their holdings over time. Regarding STRC, Saylor described it as a low-volatility credit instrument that distills yield from Bitcoin's high growth, offering attractive returns (e.g., ~11-12% yield) for risk-averse investors. He noted that Strategy's STRC issuance now constitutes about 60% of the U.S. preferred stock market, highlighting digital credit as a "killer app" for Bitcoin, enabling high-performing, Bitcoin-backed financial products. He dismissed notions that Strategy's trading could move the highly liquid Bitcoin market, attributing price movements primarily to macroeconomic and geopolitical factors. Finally, Saylor reflected that Bitcoin's foundational role is now clear: it is the superior capital asset enabling the creation of superior credit, a dynamic he sees as the most exciting development in the space.

marsbit44 min fa

Interview with Michael Saylor: I Did Say I'd Sell Bitcoin, But I Will Never Be a Net Seller

marsbit44 min fa

Trading

Spot

Futures