The initial coin offering of the Ethereum layer-2 network MegaETH reportedly “sold out” in minutes and is currently oversubscribed by approximately $400 million, as participants rush to secure allocations of its MEGA token.
The auction for the MEGA token was launched on Monday with a fundraising cap of just under $50 million, but has already attracted over $450 million in commitments within hours.
The ICO will distribute 5% of the total supply of 10 billion tokens, allowing for maximum bids of $186,282 and minimum bids of $2,650, with an option for a one-year lock-up at a 10% discount.
Due to the oversubscription, a “special allocation mechanism” will determine each user’s allocation when the countdown timer concludes in two days, as stated in the auction FAQ. This mechanism considers previous participation in the MegaETH and Ethereum communities, along with whether a lock-up was chosen.
The project’s white paper indicates that the token will launch in January 2026. It will be tradable on designated centralized and decentralized exchanges operating on MegaETH, functioning as a standard ERC-20 token while also serving as an “economic engine” for new infrastructure features, such as sequencer rotation and proximity markets.
MegaETH token sale spike: Conviction or FOMO?
Reports on X reveal that the tokens were oversubscribed within minutes, and within just two hours, they had reached five times the cap with 819 addresses making maximum bids, according to blockchain analytics firm Arkham.
Brian Q, an analyst from the on-chain analytics platform Santiment, noted on Tuesday that “Such aggressive, synchronized buying can be a red flag.”
“When too many investors move in the same direction simultaneously, it can amplify speculative pressure, increase the risk of a sharp reversal, and may indicate more social momentum than fundamental strength,” he stated.
“The sheer volume of max contributions in such a short time raises the question: are buyers motivated by long-term faith in MegaETH’s technology, or simply by fear of missing out (FOMO)?”
MegaETH’s promise could also be a factor
However, he also mentioned that the project’s ambitious promises may drive the interest. MegaETH’s team, referred to as MegaLabs, has secured significant funding and garnered support from prominent industry figures, including Ethereum co-founders Vitalik Buterin and Joe Lubin.
Related: Bitcoin, Ether treasuries have ‘ghosted’ since the crypto crash
Following the launch of its testnet in March, the project aims to provide millisecond-level transaction speeds.
“Ultimately, MegaETH is generating excitement because it offers something every crypto enthusiast desires: a blockchain experience that is as quick and seamless as a typical app, yet remains connected to Ethereum’s reputable network,” Brian Q remarked.
“If the team meets its objectives, it could emerge as one of the most valuable extensions of Ethereum. However, like all early-stage crypto initiatives, it remains experimental — so traders and investors should exercise caution and curiosity as the narrative develops.”
Magazine: MegaETH launch could save Ethereum… but at what cost?
