So, it turns out Trove Markets is under more scrutiny than a celebrity at a tabloid convention! 😳 Allegations are flying around that they dumped over $10 million in $HYPE tokens in just 24 hours. Yes, you read that right – a full-blown crypto soap opera unfolding on the Web3 decentralized perpetual exchange built on Hyperliquid’s HIP-3 protocol. Cue dramatic music!
Now, these cheeky tokens were originally meant for staking to launch the DEX, but instead, they were sold from a wallet linked to the project itself. Suspicious? You bet! It’s like finding your favorite dessert missing right before a diet starts – just plain rude. 🍰
Trove Markets and the $10 Million HYPE Dump Debacle
The project raised a whopping $20 million through an initial coin offering (ICO) to secure 500,000 $HYPE tokens, which were necessary for permissionless deployment under Hyperliquid’s HIP-3 protocol. Talk about a cash grab! 💰
On-chain data from wallet 0xebe07e526c4dc5f0005801bbd7d9850c424cf719 shows that sales kicked off with a humble 6,196 $HYPE worth around $160,000. A pint-sized start for a mega dump!
But hold your horses! Things escalated faster than a cat meme going viral. Hyperliquid News reports that Trove Markets liquidated $5 million in tokens, with total sales reaching 194,273 $HYPE tokens – that’s roughly $10 million – all in a single day. Talk about a fire sale! 🔥
They increased to $10 million in dumping in 24 hours.
– Hyperliquid News (@HyperliquidNews) January 18, 2026
To make things even juicier, Trove’s founder supposedly denied having any control over the wallet, asking for it to be shut down. But lo and behold, the wallet resumed sales mere minutes later. It’s like when you say you’re on a diet and then find yourself at a buffet. 🙈
“A few minutes after the founder of @TroveMarkets said that he does not control the wallet, and that he is asking for the wallet to be shut down, it starts selling again, reaching 194,272.79 $HYPE in 24 hours,” Hyperliquid News reported.
This rapid-fire sale has everyone speculating – is it insider fraud or simply a case of someone forgetting their wallet password? The community is definitely feeling some major trust issues right now. 🕵️♀️
Hyperliquid Foundation Calls in the Big Guns: ZachXBT!
Enter ZachXBT, the detective of the crypto world! This controversy only adds to the already existing criticism surrounding Trove Markets’ ICO, which was extended at the last minute and oversubscribed, ultimately raking in $11.9 million at a fully diluted valuation of $20 million. Confusion reigns supreme, causing a loss of around $73,000 for Polymarket prediction market users. Yikes! 💔
And just when you thought it couldn’t get any wilder, reports surfaced that the project was paying influencers $5,000 a month to promote the token while allegedly hiding the Iranian origins of some team members. Transparency? What’s that? 🤷♀️
Community members, including the ever-vocal NMTD8, flagged Trove’s investment in the dubious XMR1 project and pointed out the delay in staking the HYPE tokens. Oh, the drama!
Previously spoke out against Trove.
They then bought XMR1 with the funds from selling HYPE.
XMR1 is also extremely shady.
Beware of those trying to extract from HL.
If Trove had good intentions, they would have staked the 500K HYPE to be ready for HIP-3 deployments by now…
– NMTD.HL (@NMTD8) January 18, 2026
The general sentiment among the community is that all these shenanigans suggest a strategy to extract funds without meeting ICO obligations. The HYPE token has since tanked to about 60% below its ICO price, leaving early investors feeling a bit queasy. 🚫📉
In a bid to save face, the Hyperliquid Foundation donated 10,000 $HYPE to blockchain investigator ZachXBT. A generous gesture or just a smoke screen? 🤔
On-chain investigators don’t get enough credit.
Hyperliquid Foundation just donated 10,000 $HYPE (~$254K) to ZachXBT confirmed by Zach himself.
He confirmed it on-chain, and it’s one of the biggest donations he’s ever received.
– Broke Doomer🔺 (@im_BrokeDoomer) January 18, 2026
ZachXBT, the crypto fraud detective extraordinaire, is expected to provide some much-needed clarity on whether these sales were part of a grand conspiracy or just a case of operational mismanagement. Either way, the stakes are high! 🎢
Despite all this chaos, Trove Markets is still chugging along with mainnet plans set for February 2026. However, the TGE (token generation event) has been postponed to 4 PM UTC on January 19, 2026, two hours later than previously scheduled. Because who doesn’t love a good delay? 🕒
Due to the move to Solana and the refund processing, we need more time to execute this correctly.
New TGE time: Jan 19, 4:00 PM UTC.
We sincerely apologize for the delay.
We’ll share the contract address and final distribution details once we are live.
– TROVE (@TroveMarkets) January 18, 2026
Yet, with ongoing token dumps and trust erosion, the project might struggle to meet staking requirements under HIP-3. If they can’t pull it together, investors could be left in the lurch. 😬
Trove Markets have been facing major fud for doing undisclosed influencer ads and now they have also shifted their token launch from hyperliquid to solana.
So, zero right???
– 0xMarioNawfal (@RoundtableSpace) January 18, 2026
And, surprise surprise, Trove did not immediately respond to BeInCrypto’s request for comment. Which makes sense – why comment when you can just let the rumor mill run rampant? This whole incident is a prime example of the risks lurking in the world of newer DeFi projects, especially those involving permissionless protocols, ginormous token allocations, and a sprinkle of limited transparency. Buckle up, folks! 🎡
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2026-01-19 00:39