For crypto investors, the worst thing they can do is “trust” a founder to deliver on their promises. Whenever millions are raised through an ICO or from private investors, what happens in the coming weeks or months can define how the project evolves. While some raise millions and actually solve a problem, quickly showing 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 major launchpads like Pump.fun die upon launch. The +99% of coin projects that die are often rug pulls. To put a number on it, over $6 billion was lost to rug pulls in 2025 alone. Much of this loss is due to the collapse of Mantra (OM) in April 2025.
BREAKUP
Mantra $OM fell 92% in the last 24 hours
Erase $6 billion in market value
Traders believe this could be one of the biggest “rug pulls” in recent history.$OM Yeah…. pic.twitter.com/K2cuCDouEU
– Lego (brick by brick) (@onchainlego) April 13, 2025
BREAKUP And earlier today, Trove, a project that raised millions from hyperliquid and robust investors, forcing the TROVE crypto to fall -95%.
DISCOVER: 9+ Best Memecoin to Buy in 2026
The TROVE Crypto Rug Pull On Hyperliquid: What Happened?
Trove presented 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 contracts on illiquid “cultural assets” like Pokémon cards and luxury watches. To launch on Hyperliquide, the project had to bet 500,000 HYPE as a deposit. Given their mission and promising track record, they found a partner to guarantee the bond. Additionally, in just a few days, the community raised more than $11 million in an ICO, financing its integration and liquidity.
But, for investors, there were warning signs even before this slight crisis. During the ICO, the team briefly extended the sell deadline and then canceled it, leading to massive losses for Polymarket traders who were betting on the final raise amount. It’s worth noting that the Trove ICO was fully oversubscribed, meaning they had the maximum amount of “new” money on hand. Some claimed that Trove insiders had bet perfectly on these sudden changes.
absolute crypto by Trove
> be Trove
> scale $1 billion testnet volume as marketing
> launch a $2.5 million ICO and get a 5x oversub
> extend the deadline by 5 days
> CT reaction
> cancel the extension
> A Trove intern won $70,000 on Polymarketround trip to Polymarket
0.3c -> 85c -> 0c— poezdec
Things were going smoothly until January 19, when the team, without notice, announced that they were dropping Hyperliquid and moving to Solana. The team claimed that a “liquidity partner” withdrew the 500,000 HYPE needed for participation. Investors were furious, as they had specifically invested in a native Hyperliquide project. With this announcement, wallets linked to the Trove team began aggressively dumping their collateral. Meanwhile, HYPE USDT rose from over $26 to spot rates. HYPE is still under pressure, extending last week’s losses to almost -7%.
As of press time, there have been no solid developments as to why Trove is switching sides.
Due to the move to Solana and processing refunds, we need more time to run it correctly.
New TGE time: January 19, 4:00 p.m. UTC.
We sincerely apologize for the delay.
We will share the contract address and final distribution details once we go live.
– TROVE (@TroveMarkets) January 18, 2026
On X, they ask for more time to reimburse investors. Further investigations reveal that the Trove team is sending ICO money to casinos and KOLs, without any repayment plan.
Would you like to explain to the community why your team was able to match the $45,000 from the January 11 Trove Angel Round fundraiser and deposit it directly to a casino deposit address?
Source address
7nRNzRX2WQ3WxV3eV6gDeJeWTApqefuXNXQRZ1xEh1eh
Destination address… pic.twitter.com/6sdjiLo8GW-ZachXBT (@zachxbt) January 17, 2026
However, for investors who expected quick 10x gains, the TROVE crypto ended up crashing after its January 19 launch.
(Source: HYPERDailyTK,)
DISCOVER: 15+ Upcoming Coinbase Listings to Watch in 2026
The Coinbase Solution
Looks like rug pulls are part of crypto, and even due diligence won’t help. In September, HyperVault, a yield aggregator on Hyperliquide, suddenly drained nearly $4 million in user deposits. Their website and social media also immediately went dark. Moments later, the funds were transferred to Ethereum, exchanged for ETH, and laundered via Tornado Cash.
Aware of the risks, Coinbase launched a token sales platform in November. While its primary goal is to provide startups with a compliant way to raise capital, it is specifically designed to solve the rug-pulling and pump-and-dump issues that have plagued the industry for years.
Coinbase plays the role of gatekeeper. Each project seeking to raise funds must pass a rigorous audit and publicly disclose its team, finances, and tokenomics before being allowed to list. To avoid any random draw, Coinbase placed tokens allocated to the team and affiliated insiders.
DISCOVER:
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- 99Bitcoins State of the Crypto Market Report for Q4 2025
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The article Trove Crypto Rug Pull: Ditches Hyperliquid for Solana, TROVE USDT Down -95% appeared first on 99Bitcoins.
