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The Ethereum layer-2 platform MegaETH’s initial token sale allegedly “sold out” in mere minutes and is currently oversubscribed by approximately $400 million, as participants rush to secure an allocation of its MEGA token.
The Ethereum layer-2 platform launched the bidding for its MEGA token on Monday with a funding cap of just under $50 million, but the auction has since attracted over $450 million in pledges in only a few hours.
Overall, the initial coin offering (ICO) will distribute 5% of the complete 10 billion token supply, with a maximum bid limit of $186,282 and a minimum bid of $2,650, providing the choice to opt for a one-year lock-up for a 10% discount.
Due to the oversubscription, when the countdown concludes in two days, a “special allocation mechanism” will be implemented to determine each participant’s allocation, according to the auction FAQ, which considers prior involvement in the MegaETH and Ethereum communities, as well as whether a lock-up option was chosen.
The project’s white paper states that the token launch date is set for January 2026. The token will be tradable on specified centralized exchanges and decentralized exchanges operating on MegaETH, functioning as a conventional ERC-20 token while also serving as an “economic engine for a pair of innovative infrastructure features, including sequencer rotation and proximity markets.”
MegaETH token auction surge: Belief or FOMO?
Reports on X reveal that the tokens were oversubscribed within minutes, and in merely two hours had already attained five times the cap with 819 wallets committing the maximum bid, according to the blockchain analytics service Arkham.
An analyst from the on-chain analytics platform Santiment, Brian Q, remarked on Tuesday, “Such aggressive, synchronized acquisition can be a cause for concern.”
“When an excessive number of participants are headed in the same direction simultaneously, it can heighten speculative pressures, increase the risk of a sudden reversal, and may indicate more social momentum than underlying fundamentals,” he stated.
“The immense volume of max contributions in such a brief time frame raises the question: are buyers motivated by long-term confidence in MegaETH’s technology, or by a fear of missing out (FOMO)?”
MegaETH’s potential might also be a factor
However, he also indicated it could be influenced by the project’s ambitious promises. The creators of MegaETH, known as MegaLabs, have secured substantial funding and are supported by some of the most notable figures in the industry, including Ethereum co-founders Vitalik Buterin and Joe Lubin.
Related: Bitcoin, Ether treasuries have ‘ghosted’ since the crypto crash
The initiative, following the debut of its testnet in March, aims to realize millisecond-level transaction speeds.
“Ultimately, MegaETH is generating so much enthusiasm because it promises something everyone in crypto desires: a blockchain that’s as swift and seamless as a conventional app, but still linked to Ethereum’s reliable network,” Brian Q stated.
“If the team realizes its objectives, it could evolve into one of the most valuable Ethereum extensions yet. But like all nascent crypto initiatives, it remains experimental — so traders and investors should maintain curiosity, not recklessness, as the story develops.”
Magazine: MegaETH launch could save Ethereum… but at what cost?
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