Auction Closes Early with 3x Oversubscription

The public auction for MEGA, the native token of Ethereum Layer 2 protocol MegaETH, concluded almost as soon as it began, raising its hard cap of nearly $50 million in just a few minutes. The sale, which was scheduled to run for 72 hours, saw demand that was more than triple the available supply, pointing to powerful investor confidence in the project.

Selling 5% of its total supply, the auction established a valuation for MegaETH close to $1 billion. The event, conducted on the Ethereum mainnet using USDT, attracted significant interest from accredited investors globally. The total demand implied a fully diluted valuation (FDV) of over $3 billion at the time of the sale, showcasing a market appetite far exceeding the project’s funding target.

Individual bids were permitted to range from a minimum of $2,650 to a maximum of $186,282. To encourage long-term alignment, participants were also offered a 10% discount on their tokens if they committed to locking them for one year.

Strategic Buyback and Token Economics

In a related development, MegaETH announced it had repurchased approximately 4.75% of its token supply from undisclosed early investors. This move suggests a proactive strategy to manage its token distribution and consolidate its stakeholder base following the highly successful public sale. While the buyback could increase token scarcity, the project did not disclose the names of the investors involved.

MegaETH’s official project document outlines a clear plan for its 10 billion token supply. The largest portion, 70.3%, is reserved for ecosystem development, staking rewards, and infrastructure initiatives. Venture capital investors hold 14.7% of the supply, while the project’s team is allocated the remaining 9.5%. This distribution model emphasizes a focus on long-term growth and fostering a robust, decentralized ecosystem.