TLDR
- MegaETH’s ICO raised $450 million, exceeding its $50 million target within hours.
- The token sale was oversubscribed by 8.9 times, with a strong demand for the MEGA token.
- A special allocation mechanism will determine how the oversubscription is handled.
- The ICO offers a 5% allocation of the total 10 billion MEGA tokens available.
- The token will be tradeable in 2026 on centralized and decentralized exchanges within the MegaETH network.
MegaETH’s initial coin offering (ICO) has sold out in minutes, with $450 million in commitments. The Ethereum layer-2 network opened the auction with a raise cap of just under $50 million. The ICO was oversubscribed by approximately $400 million, indicating a high level of demand for the MEGA token.
MegaETH Raises $450M, Allocation Mechanism Set
The ICO of MegaETH opened on Monday with the goal of raising $50 million. However, within hours, it had already surpassed that target, with over $450 million in commitments. The auction allocated 5% of the total 10 billion token supply, offering a maximum bid of $186,282 and a minimum bid of $2,650.
Participants also had the option to select a one-year lock-up for a 10% discount. This option attracted many investors, further pushing the demand for the MEGA token. Blockchain analytics platform Arkham reported that 819 addresses committed the maximum bid amount within just two hours.
$285 MILLION COMMITTED TO MEGAETH IN ONLY 2 HOURS
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
— Arkham (@arkham) October 27, 2025
Due to oversubscription, MegaETH will utilize a “special allocation mechanism” to determine token distribution. The mechanism will consider factors like past engagement with MegaETH and Ethereum communities. It will also factor in whether participants selected the lock-up option, according to the auction FAQ.
The ICO will conclude in two days, but the final allocation remains uncertain. The allocation process aims to ensure a fair distribution despite overwhelming demand. The project’s white paper lists the token launch for January 2026.
MEGA Token to Launch in 2026
The MEGA token will be available for trading on centralized and decentralized exchanges. These exchanges will operate on the MegaETH network, with the token functioning as a standard ERC-20 token. However, the token will also support infrastructure features such as sequencer rotation and proximity markets.
MegaETH’s creators, known as MegaLabs, have raised significant amounts of funding. The project has backing from influential Ethereum figures, including Vitalik Buterin and Joe Lubin. MegaETH aims to achieve 100,000 transactions per second and sub-millisecond latency.
The rapid oversubscription has raised concerns among some analysts. Brian Q, an analyst from Santiment, warned that such synchronized buying could signal speculative behavior.
“When too many participants act in the same direction, it can amplify speculative pressure,” he said.
Despite the concerns, the project’s ambitious goals have contributed to the hype. MegaETH promises a blockchain experience that is fast and smooth, like traditional apps. If successful, the project could become a critical Ethereum extension.
