Trove retains $9.4M in funds, while investors face losses of up to 95%

The story behind this data is worth reflection for every participant. When the project team still holds nearly ten million dollars in their account, the funds of many investors have already shrunk to less than 5% of their original value. This huge contrast not only exposes issues in project fund management but also raises questions about the ecosystem's incentive mechanisms.

Why did this situation occur? There are usually several key factors: unreasonable fund allocation, improper operational expense planning, or ineffective strategic adjustments due to market changes. In any case, when the project team still has sufficient financial reserves while community investors suffer massive losses, the trust balance begins to tilt.

This case serves as a reminder that when evaluating crypto projects, attention should be paid to: transparency of fund flows, team incentive alignment mechanisms, and risk response plans. How should the promises made during early-stage funding be fulfilled in a bear market? Is the allocation ratio between community funds and project funds reasonable? These questions determine whether a project is worth long-term participation.