Trove Markets, a project developing a decentralized perpetual exchange for collectibles, is facing significant criticism for its decision to pivot to the Solana blockchain after raising over $11.5 million through a token sale intended for an integration on Hyperliquid. This shift has led some investors to demand refunds.
The unexpected move to Solana was first announced by Trove on X (formerly Twitter) on Friday. One of Trove's builders, known as "Unwise," subsequently explained the pivot, attributing it to a liquidity partner withdrawing 500,000 Hyperliquid (HYPE) tokens that were essential for the planned Hyperliquid integration.
“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.”
The TROVE token sale initially took place from January 8 to January 11, with the token generation event now scheduled for Monday at 4:00 pm UTC. Trove stated that due to the transition to Solana and the ongoing refund processes, additional time is required to execute these changes correctly.
In November, Trove had secured a separate $20 million in funding specifically to acquire the 500,000 HYPE tokens necessary for Hyperliquid's mandatory HIP-3 stake. This stake acts as a lock-up of capital, serving as a slashable security bond required to launch a perps market on the Hyperliquid platform.
Community Reaction and Refund Demands
The decision to switch to Solana has ignited strong criticism within the Trove community. Many investors are demanding refunds, while others are seeking clarification on how the pivot to Solana might impact their ability to recover their investments.
One X user, NMTD.HL, urged the project to "Refund everyone ASAP and re-raise with your new conditions/roadmap," emphasizing that "People did not invest in your ICO for you to launch on Solana."
Another user, HYPEconomist, echoed these sentiments, stating, "Refund the people now!!! You raised the money to build on hyperliquid! Give back the money and raise on solana if you think that's what your community really wants."
Trove Markets' Focus and Market Potential
Trove Markets intends to concentrate its perpetual trading experience on digital collectibles, including items like Pokémon cards and Counter-Strike 2 skins. This market segment has significant growth potential, with Bitwise projecting in September that it could expand into a $21.4 billion industry.
Suspicious Trove Transfers Flagged by Analysts
In parallel with the community backlash, crypto investigator ZachXBT and the Hyperliquid News X account have highlighted several Trove transfers involving the movement of HYPE tokens. These observations are based on data obtained from Hypurrscan, Hyperliquid's block explorer.
Cointelegraph reached out for comment but had not received an immediate response at the time of reporting.