For crypto investors, the worst thing they can do is “trust” a founder to deliver. Whenever millions are raised in an ICO or from private investors, what happens within the next few weeks or months can define how the project evolves. While some raise millions and actually solve a problem, quickly posting a 100X ROI, most don’t.
Some of the best cryptos to buy, including Bitcoin, Ethereum, and Polygon, for example, have already rewarded early believers. Meanwhile, in Solana, less than 1% of all meme coins launched on top launchpads like Pump.fun die as soon as they are launched. The +99% of meme coin projects that die are often rug pulls. To put in the numbers, over $6Bn was lost to rug pulls in 2025 alone. A big chunk of this loss was due to the collapse of Mantra (OM) in April 2025.
And earlier today, Trove, a project that raised millions on Hyperliquid, rugged investors, forcing the TROVE crypto to plummet by -95%.
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The TROVE Crypto Rug Pull On Hyperliquid: What Happened?
Trove marketed itself as a specialized Decentralized Exchange (DEX) built on Hyperliquid using the HIP-3 protocol. Their goal was to allow users to trade perpetual futures on illiquid “cultural assets” like Pokémon cards and luxury watches. To launch on Hyperliquid, the project was required to stake 500,000 HYPE as a security bond. Given their mission and promising roadmap, they found a partner to secure the bond. Additionally, within days, the community raised over $11M in an ICO, funding their integration and liquidity.
But, for investors, there were red flags even before this soft rug pull. During the ICO, the team briefly extended the sale deadline, then reversed it, leading to massive losses for traders on Polymarket who were betting on the final raise amount. It is worth noting that the Trove ICO was fully oversubscribed, meaning they had the maximum amount of “new” money in hand. There were claims that Trove insiders placed perfect bets on these sudden changes.
Things were moving smoothly until January 19 when the team, without notice, said they were abandoning Hyperliquid and moving to Solana. The team claimed a “liquidity partner” withdrew the 500,000 HYPE needed for the stake. Investors were furious, as they had specifically invested in a Hyperliquid-native project. With this announcement, wallets linked to the Trove team began aggressively dumping their security bond. During this time, HYPE USDT fell from above $26 to spot rates. HYPE is still under pressure, extending losses of the past week to nearly -7%.