Trove on Solana: Lessons from TROVE dropping 97% instantly

The strategic movement of the Trove project has recently become the focus of the crypto community. On-chain data shows that just a few minutes after TGE, the TROVE token lost 97% of its value, dropping from an initial valuation of $20 million to below $1 million. This is not a random incident but the result of successive strategic decisions and a loss of investor confidence.

From Hyperliquid to Solana - a strategic pivot mid-course

Initially, Trove raised $11.5 million to build a perpetual contract DEX on the Hyperliquid platform. However, a key liquidity provider partner decided to withdraw from the project, reclaiming 500,000 HYPE tokens. This change forced the development team to choose: either continue with Hyperliquid with limited resources or seek a new direction. Ultimately, Trove chose the second option, deciding to completely shift to building on Solana, demonstrating their belief that this was the only way to preserve the project.

TROVE’s 97% price plunge - a storm of lost trust

Right after TGE, what happened was a storm. The TROVE token lost over 97% of its value within just 10 minutes, falling to $0.0008. This figure reflects the collapse of investor trust, those who had hoped for stability in the project. To minimize losses, Trove refunded $2.44 million to some early investors and plans to return $100,000 to participants of the ICO round. These steps show the project’s efforts to address the incident, although they are still not enough to restore public confidence.

Warning signs: Token concentration and transparency questions

Blockchain analysis tools like Bubblemaps detected a concerning sign: a certain entity holds 12% of the total TROVE supply through 80 newly created wallets. While there is currently no direct evidence linking this to the official development team, this concentration raises suspicions within the community regarding the project’s transparency and governance.

The path to recovery: From promises to actions

To confront the wave of skepticism, Trove has clearly announced that the project will not give up. Instead, the team commits to taking further steps to restore trust through transparency, active communication with the community, and developing a new DEX on the Solana platform. However, whether Trove can overcome this crisis remains open, and the future of TROVE will depend on their ability to execute their plans and regain community trust.