Ethereum Layer 2 network MegaETH has completed a wildly successful public token sale, reaching its $50 million cap within minutes and drawing over $350 million in committed funds.
Key Takeaways
- MegaETH sold 5% of its MEGA token supply in minutes, hitting a $50 million cap and cutting short a planned 72-hour sale.
- The sale was more than three times oversubscribed, with pre-deposits hitting $350 million and a “hypothetical” FDV of $7 billion.
- Participants included over 100,000 verified users, with accredited U.S. investors required to lock tokens for one year.
- MegaETH previously repurchased 4.75% of its supply from early investors, signaling efforts to rebalance token distribution.
What Happened?
Ethereum Layer 2 project MegaETH launched its public MEGA token auction with high expectations, but the actual turnout far exceeded them. Intended to last three days, the token sale was closed within minutes after reaching the $49.95 million cap. Only 5% of the 10 billion total token supply was sold, yet the demand exceeded $350 million globally, reflecting overwhelming investor interest.
362m raised on megaeth sale in just few hours
— Geek (@smolgeeek) October 27, 2025
this is by far one of the most insane raise in crypto history pic.twitter.com/njUPWjCsWK
Mega Demand for MEGA Token
MegaETH’s initial coin offering (ICO) officially began on October 27, 2025, and it quickly gained traction with global accredited investors. According to the company, over 100,000 users completed know-your-customer (KYC) verification in advance. Participants committed funds via the Ethereum mainnet using USDT, with individual bids capped at $186,282 and a minimum set at $2,650.
The auction offered an optional 10% discount to participants who agreed to a one-year token lock-up, which was mandatory for U.S. investors due to regulatory requirements. Non-U.S. users could also opt in to boost their allocation chances.
Despite the sale’s official cap at $50 million, pre-deposits reached $350 million just hours after opening. This translated into a temporary “hypothetical” fully diluted valuation (FDV) of $7 billion. However, once final allocations are settled, MegaETH’s stated FDV for the MEGA token remains at $999 million.
Strategic Distribution and Tokenomics
MegaETH’s whitepaper outlines a clear allocation strategy for its MEGA token:
- 70.3% is reserved for ecosystem development and staking rewards.
- 14.7% is allocated to venture capital investors.
- 9.5% goes to the team behind MegaETH.
This token distribution underscores the project’s long-term commitment to decentralization and growth.
Additionally, MegaETH repurchased 4.75% of its token supply from early investors earlier this month. Though the identities of those investors remain undisclosed, this move was likely aimed at reshaping the token’s distribution and aligning incentives with long-term stakeholders.
Testnet Success and Growing Momentum
Part of the excitement around MegaETH stems from its well-received testnet, launched in March 2025. Praised for its high-speed transaction execution, some users noted the experience made Ethereum feel “instant.” This performance fueled investor optimism and contributed to the massive demand during the ICO.
Allocations for the oversubscribed sale will be decided based on both on-chain engagement and community participation, adding a merit-based component to the distribution process.
According to MegaETH’s whitepaper, the token generation event will occur no sooner than 40 days after the public sale, placing the expected launch in mid-December or January 2026.
CoinLaw’s Takeaway
Honestly, this kind of explosive demand reminds me of early bull market ICOs, but with a more structured and mature approach. In my experience, when a project not only raises its cap instantly but also gets over $350 million in commitments, it shows real conviction from the community. The fact that MegaETH paired this with a buyback and detailed tokenomics makes it more than just hype. I’ll be watching closely to see how they handle the token launch and whether that testnet performance translates into real-world adoption.
