- MegaETH ICO exceeded $450M, nearly ten times its $50M cap.
- MEGA token allocation will use a special mechanism based on engagement and lock-up choice.
- The project promises high-speed Ethereum layer-2 scalability but remains experimental.
Ethereum layer-2 network MegaETH has made waves in the crypto world, with its initial coin offering (ICO) selling out within minutes and attracting over $450 million in commitments — nearly ten times its original $50 million cap. Investors are scrambling to secure allocations of the network’s MEGA token, fueling one of the fastest ICOs in recent memory.
Rapid Oversubscription Highlights FOMO
MegaETH’s ICO opened on Monday, offering 5% of its total 10 billion token supply. Bids ranged from $2,650 to a maximum of $186,282, with a one-year lock-up option granting a 10% discount. By the end of the first two hours, blockchain analytics firm Arkham reported that 819 addresses had already committed the maximum bid.
Such aggressive demand has sparked debate among analysts. Brian Q of Santiment noted that “synchronized buying can be a red flag,” potentially driven more by social momentum and fear of missing out (FOMO) than by long-term conviction in MegaETH’s technology.
Allocation Mechanism to Determine Final Shares
Because the ICO is oversubscribed, MegaETH will implement a special allocation mechanism once the countdown ends in two days. This system considers participants’ prior engagement in the Ethereum and MegaETH communities, as well as their choice of a lock-up period, to distribute tokens fairly among buyers.
$285 MILLION COMMITTED TO MEGAETH IN ONLY 2 HOURS
— Arkham (@arkham) October 27, 2025
The MegaETH public sale has been open for 2 hours so far – it is already oversubscribed by more than 5x.
819 addresses committed the max amount, sending $186,282 USDT to MegaETH’s sale address. pic.twitter.com/4KCcRhLDtH
MegaETH’s Promise: Speed Meets Ethereum Security
The hype is not purely speculative. MegaETH, developed by MegaLabs, aims to process 100,000 transactions per second with sub-millisecond latency, positioning itself as a high-speed extension of Ethereum. Supported by prominent figures like Ethereum co-founders Vitalik Buterin and Joe Lubin, the platform also introduces novel infrastructure features, including sequencer rotation and proximity markets.
Also Read: Ethereum Recovery Strengthens Amid On-Chain Growth & Institutional Bets
“If the team delivers on its goals, it could become one of the most useful Ethereum extensions yet,” Brian Q added. Still, he cautioned that MegaETH remains experimental, urging traders to stay curious but cautious.
MegaETH’s oversubscribed ICO underscores both the enormous interest in Ethereum layer-2 solutions and the delicate balance between innovation and speculation. While the project promises breakthrough speed and scalability, early investors must weigh enthusiasm against the inherent risks of emerging crypto projects.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
