Trove Markets, a startup focused on decentralized perpetual exchanges for collectibles, has sparked intense controversy after abandoning Hyperliquid just days after raising $11.5 million in a public token sale.
The sudden pivot to Solana came after a liquidity partner withdrew 500,000 HYPE tokens, required to deploy a perpetual market on Hyperliquid. "This changes our constraints: we’re no longer building on Hyperliquid rails, so we’re rebuilding the perp DEX on Solana from the ground up," said Trove contributor Unwise on X.
The timing unsettled investors, as Trove’s token generation event, initially scheduled for Sunday, faced multiple delays before being rescheduled for Monday at 4:00 pm UTC.
Hyperliquid’s HIP-3 framework mandates a 500,000 HYPE token stake as a security bond, which can be slashed if platform rules are violated. Trove had previously disclosed raising $20 million to secure this allocation. When the partner exited, the project lost the ability to launch on Hyperliquid, forcing a rapid platform shift.
Investor Backlash and Refund Demands
The move drew immediate criticism from contributors. Many argued funds were explicitly raised for Hyperliquid deployment and demanded refunds. One user wrote, "Refund everyone ASAP and re-raise with your new conditions/roadmap." Another added, "You raised the money to build on Hyperliquid. Give it back and raise on Solana if that’s what you want." Trove acknowledged the backlash and said refund processing was underway. "Due to the move to Solana and the refund processing, we need more time to execute this correctly," the team stated.
Additional scrutiny arose from on-chain investigators flagging HYPE and SOL token transfers connected to Trove. Blockchain researcher ZachXBT alleged roughly $45,000 worth of SOL from Trove-linked wallets was sent to prediction market platforms. Unwise explained that the funds were paid to an influencer for advertising and subsequently moved independently. However, critics described it as undisclosed paid promotion amid a sensitive token sale.
Market Implications and Execution Risks
Trove’s core product targets perpetual futures for collectibles, including Pokémon cards and Counter-Strike 2 skins. Analysts predict the collectibles market could grow to $21.4 billion, signaling demand for derivatives and hedging tools.
However, the Solana pivot places Trove in a competitive derivatives ecosystem, resetting development timelines and increasing execution risk. The TROVE token remains unlaunched, and the impact of refunds, delays, and reputational damage on adoption remains uncertain.
Ultimately, Trove faces a credibility test. Backers are closely watching refunds, timelines, and disclosure improvements. The episode highlights how quickly investor sentiment can sour when platform dependencies shift unexpectedly.