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Trove Markets is facing increased scrutiny after it allegedly dumped more than $10 million in $HYPE tokens in a 24-hour period. Web3’s decentralized perpetual exchange is built on Hyperliquid’s HIP-3 protocol.
These tokens, originally obtained by staking to launch a DEX, were sold by a wallet associated with the project, raising suspicions of internal manipulation and undermining the trust of the community.
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Trove Markets makes loads of more than $10 million of HYPE dump
The project raised $20 million through an initial coin offering (ICO) to secure $500,000 HYPE tokens, a stake required to implement without permission below. The HIP-3 protocol of hyperfluids.
confirm Chain data from wallet 0xebe07e526c4dc5f0005801bbd7d9850c424cf719 shows that the sale started with a modest amount of $6,196 HYPE is worth about $160,000. at current noise rates.
However, activities quickly escalated. Hyperliquid News reported that Trove Markets initially liquidated $5 million worth of tokens, with total sales reaching 194,273 HYPE tokens, equivalent to around $10 million, in a single day.
To complicate the situation, Where he refused The founder publicly declared control of the wallet and requested that it be closed. However, the wallet resumed sales minutes later.
“Minutes after the founder of @TroveMarkets said he had no control over the wallet and asked for the wallet to be closed, the sales started again, reaching $194,272.79 HYPE in 24 hours. As reported News Hyperliquid.
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The continued rapid sales led to speculation about internal fraud or hacking of access to the wallet, which increased the concern of the community.
Hyperliquid Foundation is partnering with ZachXBT for the investigation
This controversy adds to the existing criticism around Trove Markets’ ICO. The show extended at the last minute and went oversubscribed, eventually raising $11.9 million at a fully diluted value of $20 million.
The confusion about the two priority projects have led to losses About $73,000 for PolyMarket Prediction Market users.
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Reports also emerged that the project paid influencers $5,000 per month to promote the code with invisibility. The Iranian origin of the team membersraising additional concerns about transparency.
Community members, including NMTD8, also pointed out Trove’s investment in the controversial XMR1 project and the delayed storage of HYPE tokens.
The general opinion is that all these things point to a strategy to extract money without fulfilling the obligations of the ICO. Since then, the HYPE token has fallen nearly 60% from its ICO price, leaving early investors exposed.
In response, I donated Hyperliquid Foundation with $10,000 HYPE For blockchain researcher ZachXBT. This indicates efforts to investigate the token sale and move the protocol away from potential misconduct.
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ZachXBT, known as Track digital currency fraud and recover stolen fundsclarification as to whether the sales were part of coordinated misconduct or operational mismanagement.
Despite the controversy, Trove Markets is still in operation with mainnet plans planned for February 2026. However, the Token Generation Event (TGE) has been postponed to 4pm UTC on Monday 19 January 2026, two hours after 7pm. UTC .
However, the partial discharge of codes and erosion of trust puts the project at risk of not meeting the foreclosure requirements under HIP-3. This could prevent the launch of the DEX and leave investors without a solution.
Trove Markets did not immediately respond to BeInCrypto’s request for comment. However, the incident reflects the risks inherent in modern DeFi projects, especially those involving permissionless protocols, large token allocations, and limited transparency.
