MegaETH auction hits 6x demand as implied valuation nears $6b

MegaETH continues to attract outsized capital commitments well beyond the sale’s $50 million cap, with bids approaching six times available supply and pushing the hypothetical fully diluted valuation close to $6 billion as accredited buyers fight for allocation.

On Oct. 27, MegaETH opened the public auction for its MEGA token on Ethereum mainnet, planning a 72 hour sale that would conclude only after bids settled and allocation criteria were applied. Instead, the raise has already reached its maximum cap with roughly $296 million in bids submitted at the top price, according to MegaETH’s website at press time.

The sale remains technically open, allowing verified bidders to continue submitting commitments at $0.0999 even though supply has been fully spoken for, creating 5.9x demand relative to the tokens available.

MEGA token eligibility, settlement mechanics, and design

This overwhelming demand is being channeled through a tightly controlled auction process. Participation is exclusively open to verified accredited investors, both in the U.S. and internationally, who must bid in USDT on the Ethereum mainnet.

MegaETH said each participant is restricted to a single wallet address, a measure designed to prevent Sybil attacks and promote a more equitable distribution, at least within the accredited investor pool.

Notably, investors can elect to lock up their entire token allocation for one year in exchange for a 10% discount. This lockup is mandatory for U.S. participants and optional for others, creating a clear incentive for long-term alignment.

Final allocations are not determined on a first-come, first-served basis. Instead, MegaETH will assess all bids after the window closes on October 30, with a final determination expected by November 5. The project has indicated it will weigh “social and onchain criteria” alongside the lockup election, suggesting a nuanced approach that may reward long-standing community advocates and historically active Ethereum users.

Once allocations are set, a settlement phase begins that gives committed buyers some flexibility. Allocated bidders can withdraw their full bids until Nov. 19 if they decide the price or terms no longer make sense. Any user choosing to exit cedes their potential share to those who remain in the pool. Refunds for unallocated participants start the same day, and those who keep their bids intact are expected to receive their discounted purchase and returned excess capital on Nov. 21

According to its whitepaper, only 9.5% of the total 10 billion MEGA token supply is allocated to the team, a notably modest figure by industry standards. The vast majority of the supply, 70.3%, is reserved for the ecosystem, staking rewards, and reserves, while venture capital investors hold 14.7%.