For crypto traders, the worst factor they’ll do is “belief” a founder to ship. At any time when tens of millions are raised in an ICO or from non-public traders, what occurs throughout the subsequent few weeks or months can outline how the undertaking evolves. Whereas some increase tens of millions and truly remedy an issue, rapidly posting a 100X ROI, most don’t.
Among the best cryptos to buy, together with Bitcoin, Ethereum, and Polygon, for instance, have already rewarded early believers. In the meantime, in Solana, lower than 1% of all meme cash launched on high launchpads like Pump.enjoyable die as quickly as they’re launched. The +99% of meme coin tasks that die are sometimes rug pulls. To place within the numbers, over $6Bn was misplaced to rug pulls in 2025 alone. An enormous chunk of this loss was as a result of collapse of Mantra (OM) in April 2025.
BREAKING
Mantra $OM has plummeted 92% within the final 24 hours
Erasing $6 billion in market worth
Merchants speculate this may very well be one of many largest “rug pulls” in current historical past$OM yikes…. pic.twitter.com/K2cuCDouEU
— Lego (brick by brick) (@onchainlego) April 13, 2025
And earlier at this time, Trove, a undertaking that raised tens of millions on Hyperliquid, rugged traders, forcing the TROVE crypto to plummet by -95%.
DISCOVER: 9+ Best Memecoin to Buy in 2026
The TROVE Crypto Rug Pull On Hyperliquid: What Occurred?
Trove marketed itself as a specialised Decentralized Alternate (DEX) constructed on Hyperliquid utilizing the HIP-3 protocol. Their purpose was to permit customers to commerce perpetual futures on illiquid “cultural belongings” like Pokémon playing cards and luxurious watches. To launch on Hyperliquid, the undertaking was required to stake 500,000 HYPE as a safety bond. Given their mission and promising roadmap, they discovered a associate to safe the bond. Moreover, inside days, the group raised over $11M in an ICO, funding their integration and liquidity.
However, for traders, there have been crimson flags even earlier than this gentle rug pull. Through the ICO, the staff briefly prolonged the sale deadline, then reversed it, resulting in large losses for merchants on Polymarket who had been betting on the ultimate increase quantity. It’s value noting that the Trove ICO was totally oversubscribed, that means they’d the utmost quantity of “new” cash in hand. There have been claims that Trove insiders positioned excellent bets on these sudden adjustments.
absolute crypto by Trove
> be Trove
> flex $1B testnet quantity as advertising and marketing
> launch $2.5M ICO and get oversub 5x
> lengthen deadline by 5 days
> backlash from CT
> cancel the extension
> Trove intern locked in $70k on polymarketroundtrip on polymarket
0.3c -> 85c -> 0c— poezdec
(@poesdec) January 12, 2026
Issues had been shifting easily till January 19 when the staff, with out discover, mentioned they had been abandoning Hyperliquid and shifting to Solana. The staff claimed a “liquidity associate” withdrew the five hundred,000 HYPE wanted for the stake. Buyers had been livid, as they’d particularly invested in a Hyperliquid-native undertaking. With this announcement, wallets linked to the Trove staff started aggressively dumping their safety bond. Throughout this time, HYPE USDT fell from above $26 to identify charges. HYPE continues to be underneath stress, extending losses of the previous week to just about -7%.
At press time, there was no strong developments to elucidate the explanation why Trove is altering camps.
As a result of transfer to Solana and the refund processing, we’d like extra time to execute this appropriately.
New TGE time: Jan 19, 4:00 PM UTC.
We sincerely apologize for the delay.
We’ll share the contract handle and remaining distribution particulars as soon as we’re stay.
— TROVE (@TroveMarkets) January 18, 2026
On X, they’re asking for extra time to refund traders. Different investigations reveal that the Trove staff is sending ICO cash to casinos and KOLs, with none plan for refunds.
Wish to clarify to the group why your staff bridged $45K from the Trove Angel Spherical increase on Jan 11 and deposited it instantly right into a on line casino deposit handle?
Supply handle
7nRNzRX2WQ3WxV3eV6gDeJeWTApqefuXNXQRZ1xEh1eh
Vacation spot handle… pic.twitter.com/6sdjiLo8GW— ZachXBT (@zachxbt) January 17, 2026
Nevertheless, for traders who had been anticipating fast 10X positive aspects, TROVE crypto ended up collapsing after launching on January 19.
(Supply: HYPERDailyTK, X)
DISCOVER: 15+ Upcoming Coinbase Listings to Watch in 2026
The Coinbase Answer
Looks as if rug pulls are a part of crypto, and even due diligence received’t assist. In September, HyperVault, a yield aggregator on Hyperliquid, all of a sudden drained practically $4M of consumer deposits. Their web site and social media additionally went darkish instantly. Moments later, funds had been bridged to Ethereum, swapped to ETH, and laundered by way of Twister Money.
Conscious of dangers, Coinbase launched a Token Sale platform in November. Whereas its major purpose is to supply a compliant method for startups to boost capital, it’s designed particularly to repair the rug pull and pump-and-dump points which have plagued the business for years.
Coinbase is performing as a gatekeeper. Each undertaking in search of to boost funds should cross a rigorous audit and make public disclosures about its staff, funds, and tokenomics earlier than it’s allowed to listing. To stop any rug pull, Coinbase has positioned for tokens allotted to the staff and affiliated insiders.
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The publish Trove Crypto Rug Pull: Abandons Hyperliquid for Solana, TROVE USDT Drops -95% appeared first on 99Bitcoins.
