MegaETH raises $50 million in minutes as MEGA token sale tops 3x demand

Ethereum Layer 2 protocol MegaETH's token event appeared to have been a great success.

MegaETH's token auction, which kicked off Monday morning and was scheduled to last 72 hours, sold out within minutes, raising $49,950,000, the maximum allowed. Selling 5% of the project’s total supply pushed MEGA's fully diluted valuation to $999,000,000, according to the sale's website.

Although the event was capped at roughly $50 million, the offering was more than three times oversubscribed at an FDV of more than $3 billion at the time of publication. MegaETH instituted a maximum bid of $186,282 and a minimum of $2,650 per individual.

The auction is being conducted using Tether's USDT stablecoin on the Ethereum mainnet. Buyers are able to lock up their allocations for one year to receive a 10% discount, according to an FAQ. Only verified accredited U.S. persons and verified non-U.S. persons are considered as eligible participants, with only one wallet address permitted.

According to a recent whitepaper, the MEGA token includes a modest 9.5% allocation to the project's team, with the protocol positioning the token as the economic engine for a pair of novel infrastructure features, including sequencer rotation and proximity markets.

In total, 70.3% of MEGA's 10 billion supply is reserved across the team, ecosystem reserves, and staking rewards, and about 14.7% allocated to MegaETH's venture capitalist investors. Earlier this month, the Layer 2 blockchain project announced it would repurchase approximately 4.75% of its token supply from early investors.

Earlier this month, MegaETH bought back 4.75% of its stake from undisclosed early investors.