The Ethereum scaling solution MegaETH, supported by Vitalik Buterin, announced that it will hold a three-day token public sale on Sonar starting October 27, selling 5% of the MEGA token supply through a British auction, with a fully diluted valuation (FDV) ranging from $1 million to $999 million, and an initial price of $0.0001 per token.
MegaETH English auction mechanism, valuation range from one million to 999 million
(Source: MegaETH)
The MegaETH announcement states that the public sale of $MEGA will be held on October 27 at Sonar, a fundraising platform under Echo, lasting for 72 hours and conducted in the form of an English Auction, selling 5% of the total $MEGA token supply, bidding up from a low starting price to a settlement price. The largest compliant cryptocurrency exchange in the United States acquired the private placement platform Echo for $375 million, bridging the ICO directly to the exchange channel, which means that after the completion of the MegaETH public sale, it may quickly be listed on the largest compliant cryptocurrency exchange in the United States.
In terms of pricing and valuation, the initial price is set at 0.0001 USD per token, corresponding to an FDV of 1 million USD, which can be considered quite low; the upper limit price is 0.0999 USD, corresponding to an FDV of 999 million USD. Each participant's investment limit ranges between 2,650 to 186,282 USD. This design ensures opportunities for small investors to participate while also meeting the allocation needs of large investors.
This public sale will take place on the Ethereum network and will only accept contributions in USDT. Each person can only participate with one wallet address. If participants choose to lock their assets for one year, they will enjoy a 10% discount, and U.S. qualified investors will be required to lock their assets for one year. This locking mechanism aims to reduce selling pressure in the early stages of the launch and reward long-term holders.
MegaETH Token Public Sale Schedule:
October 27 to 30: Public Sale (72 hours English Auction)
Before October 27: Identity verification and wallet linking must be completed.
November 5 to 19: You can choose to forfeit your share and get a refund.
November 19 to 21: Tokens will be automatically allocated to wallets (no active claim required)
In terms of timing, the public sale will start from October 27 to 30, and identity verification and wallet linking must be completed beforehand; from November 5 to 19, participants can choose to forfeit their shares and request a refund; from November 19 to 21, tokens will be automatically allocated to wallets (no need for active claiming). This design gives participants ample consideration time, and if confidence in the project is lost after the public sale, a refund can still be requested within two weeks.
The English auction allows the market to determine the valuation, with MegaETH FDV projected to reach 999 million USD. The advantage of this auction mechanism is that the final price is determined by real market demand, rather than unilaterally set by the project party. If market enthusiasm is high, the settlement price might approach the upper limit of 0.0999 USD; if market response is lukewarm, the price may remain at a lower level.
Hyperliquid pre-market FDV 4.3 billion, community consensus far exceeds public sale
(Source: Trading View)
Meanwhile, the on-chain perpetual contract exchange Hyperliquid has also launched the pre-market for MEGA/USD, with an opening price of 0.23 (FDV 2.3 billion USD), which once soared to 0.67 (FDV 6.7 billion USD), and has now slightly retreated to 0.43 (FDV 4.3 billion USD). In other words, the community consensus price has far exceeded the public sale cap price by 4 to 6 times, highlighting the high level of attention from the outside world regarding its growth potential.
The difference between the pre-market FDV of $4.3 billion and the public sale cap of $999 million provides participants with significant arbitrage opportunities. If purchased at the public sale cap price of $0.0999 and sold in the Hyperliquid market at $0.43, the theoretical profit is approximately 330%. This price disparity has attracted a large number of speculators to participate in the public sale, increasing the competitiveness of the public sale.
However, the prices in the pre-market do not represent the actual prices after going live. The liquidity of Hyperliquid is relatively limited, and prices can be easily manipulated by large orders. In addition, pre-market trading involves futures rather than spot trading, which carries delivery risks and time value decay. Therefore, although the 4.3 billion dollar FDV indicates market enthusiasm, investors should not view it as a guarantee of profit.
The explosive valuation of MegaETH also reflects the market's desire for Ethereum scaling solutions. The high gas fees and low throughput of Ethereum have always been its biggest pain points, and Layer-2 solutions like Arbitrum, Optimism, and Base have achieved great success. MegaETH is positioned as “real-time Ethereum,” claiming to provide millisecond-level confirmations and extremely low transaction fees. If the technological promises are fulfilled, it is not unreasonable for the market to assign a high valuation.
U-shaped allocation guarantees community participation, prioritizing contributors
(Source: MegaETH)
Namik Muduroglu, the founding member and Growth Officer of MegaLabs, stated that if there is oversubscription in the auction, MegaETH will implement a U-Shaped Allocation mechanism to ensure that early contributors are rewarded while also promoting broad distribution. Specifically, shares will be prioritized for participants who have contributed to MegaETH or Ethereum, while also ensuring that at least 5,000 participants receive the minimum allocation.
MegaETH recognized contributions include:
Actively promote MegaETH culture: such as holding Fluffle NFT, MegalioETH, etc.
Regularly voice for the protocol on Twitter or Discord: Community activity level included in evaluation
Early participation in major Ethereum protocols: such as Uniswap, Aave, Pendle, or Ethena
Possess significant DeFi or NFT collection history: On-chain history as proof of credit
Muduroglu pointed out that the current airdrop culture has created the wrong incentives, allowing farmers to replace community believers, and emphasized that this public sale aims to make participants who are willing to demonstrate their beliefs through actions the core force: “This is also why once we are oversubscribed, we will prioritize the existing MegaETH community.” He stressed that this public sale is not just about fundraising, but also an experiment of ideas, allowing the market to determine the value that the project should have with real money.
How to Participate in the MegaETH Token Public Sale Complete Steps
(Source: MegaETH)
First, go to the Sonar official website to create or log in to your account, complete the KYC verification, and connect your wallet. Next, go to the MegaETH token public sale page, connect the wallet you wish to participate with and your Sonar account. You can also link X, Discord, GitHub accounts, and up to three additional wallets to increase your chances of winning a lottery share. This completes your participation preparation.
Investors should be aware of the risks. Although the Hyperliquid pre-market shows an FDV of 4.3 billion USD, this does not guarantee profits for public sale participants. If the public sale settlement price is close to the upper limit of 0.0999 USD, and the actual trading price after listing is below this level, participants may face losses. Furthermore, the competition in the English auction could be very intense, and the final settlement price may be much higher than most people's expectations.
The technical promise of MegaETH requires time for verification. As a scaling solution for Ethereum, if its claimed millisecond-level confirmations and extremely high throughput cannot be realized, market enthusiasm may quickly cool down. Investors should understand that participating in the public sale is an early-stage technology project, not a mature product. Only invest funds that can be afforded to lose and conduct in-depth research on the project is a fundamental principle for participation.
