The initial coin offering for Ethereum layer-2 network MegaETH reportedly “sold out” within minutes, now being oversubscribed by approximately $400 million, as users rush to secure an allocation of its MEGA token.
The Ethereum layer-2 network launched the auction for its MEGA token on Monday, aiming to raise just under $50 million; however, it has experienced over $450 million in commitments within just hours.
The initial coin offering (ICO) will distribute 5% of the total 10 billion token supply, with a maximum bid of $186,282 and a minimum of $2,650, while offering a one-year lock-up option for a 10% discount.
Due to the oversubscription, a “special allocation mechanism” will determine each participant’s allocation when the countdown timer finishes in two days, as per the auction FAQ. This mechanism considers past engagement in the MegaETH and Ethereum communities, as well as whether a lock-up was chosen.
The project’s white paper indicates the token launch is set for January 2026. The token will be tradable on designated centralized and decentralized exchanges for MegaETH, functioning as a standard ERC-20 token while also serving as an “economic engine” for innovative infrastructure features like sequencer rotation and proximity markets.
MegaETH token sale surge: Conviction or FOMO?
Reports on X suggest the tokens were oversubscribed almost instantly, with commitments reaching five times the cap within two hours, involving 819 addresses making the maximum bid, according to blockchain analytics firm Arkham.
An analyst from the on-chain analytics platform Santiment, Brian Q, stated on Tuesday, “Such aggressive, synchronized buying can be a red flag.”
“When too many participants are acting in unison, it can heighten speculative pressure, increase the risk of a sudden reversal, and may reveal more about social momentum than fundamentals,” he added.
“The sheer volume of maximum contributions in such a brief timeframe raises the question: are buyers motivated by strong belief in MegaETH’s technology or by fear of missing out (FOMO)?”
MegaETH’s promise might also play a role
However, he noted that the project’s ambitious promises could be a contributing factor. MegaETH’s creators, referred to as MegaLabs, have secured substantial funding and received backing from some prominent figures in the industry, including Ethereum co-founders Vitalik Buterin and Joe Lubin.
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Following its testnet launch in March, the project aims to achieve millisecond-level transaction speeds.
“Ultimately, MegaETH garners significant attention due to its promise of a blockchain that matches the speed and seamlessness of a conventional app, while still being tied to Ethereum’s reliable network,” Brian Q noted.
“If the team fulfills its objectives, it could evolve into one of the most beneficial extensions of Ethereum. However, like all early-stage crypto projects, it remains experimental — so traders and investors should approach with curiosity rather than recklessness as the narrative develops.”
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