MegaETH Raises $50M in Minutes During ICO, Reaching Billion-Dollar Valuation
The MEGA token ICO turned into a frenzy. Originally scheduled to last 72 hours, the public auction sale for Layer 2 Ethereum MegaETH reached its maximum price… in just minutes. The protocol quickly hit the set ceiling of $49.95 million, pushing its fully diluted valuation (FDV) to nearly one billion dollars. The sale remains open until Thursday, with 5,000 wallets selected to receive the minimum allocation of $2,650.
The token price slightly rose in pre-market on Hyperliquid, with a projected fully diluted market cap around $4.5 billion, according to Polymarket speculators.
A Demand Three Times Greater Than Supply
Accredited investors from around the globe rushed to the sale, causing an oversubscription of over five times the available amount. Although the raised amount was capped at $50 million, total offers already exceed $260 million at the maximum price. MegaETH set an investment cap of $186,000 per individual, with a minimum entry ticket of $2,650, a measure to curb large investors without discouraging institutional ones.
Deposits are made in USDT on the Ethereum network, and participants can lock their tokens for a year in exchange for a 10% discount, a mandatory option for American investors.
A Sustainable Distribution Plan
According to the whitepaper, only 9.5% of the total supply, 10 billion tokens, is reserved for the founding team. The majority, 70.3%, fuels the ecosystem reserves and staking rewards, while 14.7% goes to early project supporters, especially through Cobie’s investment platform, Echo. A distribution model seen as relatively balanced in the Layer 2 space, often criticized for disproportionate insider allocations.
MegaETH aims to make the MEGA token the economic engine behind two key innovations: the “sequencer rotation,” a mechanism to decentralize block validation, and “proximity markets,” technology meant to optimize interactions between dApps.
A Well-Executed Operation, a Strong Signal for Ethereum
The protocol, now a major player in Ethereum scaling, recently confirmed the buyback of 4.75% of its tokens from early investors. A strategic move to build trust around the project and prepare for the token’s entry into secondary markets.
By raising $50 million in minutes, MegaETH emerges as one of the most anticipated Layer 2 projects of the year. In a landscape where competition among scaling solutions intensifies, this resounding success underscores investors’ continued appetite for Ethereum projects.
