The initial coin offering of the Ethereum layer-2 network MegaETH reportedly “sold out” within minutes and is now oversubscribed by approximately $400 million, as users rush to secure an allocation of its MEGA token.
The auction for the MEGA token was opened on Monday with a raise cap of nearly $50 million, but has since attracted over $450 million in commitments in just a few hours.
This initial coin offering (ICO) will allocate 5% of the total 10 billion token supply, with bids ranging from a maximum of $186,282 to a minimum of $2,650, and an option for a one-year lock-up for a 10% discount.
Due to being oversubscribed, a “special allocation mechanism” will be implemented at the countdown timer’s end in two days to determine each user’s allocation. This mechanism will consider previous engagement in both the MegaETH and Ethereum communities and whether a lock-up option was chosen.
The project’s white paper lists the token launch date as January 2026. The token will be tradable on both announced centralized exchanges and decentralized exchanges operating on MegaETH, functioning as a standard ERC-20 token while also serving as an “economic engine for a pair of novel infrastructure features, including sequencer rotation and proximity markets.”
MegaETH token sale spike: Conviction or FOMO?
An analyst at 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 moving 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 value,” he explained.
“The sheer volume of maximum contributions in such a brief period raises questions: are buyers driven by long-term faith in MegaETH’s technology, or by a fear of missing out (FOMO)?”
MegaETH’s promise could also be a factor
However, he also noted this could be fueled by the project’s high aspirations. MegaETH’s creators, known as MegaLabs, have garnered substantial funding and are supported by prominent industry figures, including Ethereum co-founders Vitalik Buterin and Joe Lubin.
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Following the launch of its testnet in March, the project intends to achieve millisecond-level transaction speeds.
“Ultimately, MegaETH is generating so much excitement because it promises something everyone in crypto desires: a blockchain that operates as swiftly and smoothly 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 beneficial Ethereum extensions yet. However, like all early-stage crypto projects, it remains experimental — so traders and investors should remain curious, not careless, as the narrative develops.”
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