Investors push a class action after Trove’s $11M presale ends in a sudden token crash, Solana switch, and rug pull claims.
Investors and crypto traders are now demanding a class action lawsuit against the creators of the Trove project.
This comes after the recent launch of the Trove token, where the token price collapsed by over 10% in less than 15 minutes.
Investors are now accusing Trove core developers of running a rug pull, especially after the team abandoned its original blockchain plans just one week after finishing a massive presale.
Trove Token Crash and the Alleged Solana Rug Pull
The main reason for the anger from the community comes from a sudden change in the project’s technical direction.
Trove Markets originally built its identity and fundraising efforts around the Hyperliquid ecosystem.
The team initially asked for $2.5 million but ended up collecting over $11 million from excited contributors.
However, on Monday, the developers announced they would move the entire product to Solana.
In other words, this sudden choice trapped many investors who expected a launch on the HyperEVM network.
When the coin finally went live on Solana, the results were a disaster, according to complaints.
To start with, the fully diluted volume of the asset crashed from $20 million to $1 million in minutes.
Traders who tracked the launch also say that this move prevented Hyperliquid investors from withdrawing their money before the price bottomed.
One user reported that their $20,000 investment should have returned $14,000 in stablecoins and $6,000 in tokens.
Instead, they received a total of only $600 back because the value nuked (crashed) so badly.
ZachXBT Says There Were Casino and Influencer Deposits
Blockchain investigator ZachXBT added fuel to the fire after he released data about the project’s spending habits.
He discovered that the team bridged $45,000 from the “Angel Round” raise and sent it straight to a casino deposit address.
When asked to explain this, the Trove team tried to blame a specific crypto personality who is known for gambling content.
Many community members found this excuse hard to believe. They pointed out that the same personality had been paid to promote the project earlier.
Further also show that the project secretly paid influencers to pump the ICO. These promoters reportedly received monthly pay of $5,000 and the chance to buy tokens at half the price.
Even worse, most of these individuals did not use “ad” tags in their posts, which shows a complete lack of transparency.
Finally, investigators found receipts that showed that some of this ICO money was used for bets on Polymarket.
Related Reading: $282M BTC and LTC Theft That Pushed XMR Higher: How It Happened
Broken Promises Lead to Legal Threats
A well-known influencer named Meteversejoji released a statement to distance himself from the mess.
He claimed he invested in the project months ago and was never told about the move to Solana.
According to him, the team promised to reimburse him during the token generation event.
He later realised that the developers had already spent a lot of the initial capital they raised.
The situation worsened when a major liquidity partner lost faith in the project and liquidated 500,000 HYPE tokens worth nearly $13 million just days before the launch.
This massive sale immediately removed one of the pillars holding the project up and without this backing, the launch became a ticking time bomb.
So far, the community now sees the entire event as an effort to steal funds, while pretending to be in the middle of a network migration.
Source: https://www.livebitcoinnews.com/11m-raised-then-everything-changed-why-trove-is-now-under-fire/
