Controversy surrounds MegaETH retro ICO: Does it benefit the community or exploit early investors?
Author: Golem, Odaily Planet Daily
The real-time blockchain megaETH, aimed at improving Ethereum’s performance, has announced the upcoming release of a new NFT series called The Fluffle. This series consists of 10,000 NFTs, priced at 1 ETH for whitelist members, and is an untradeable and non-transferable SBT (Soulbound Token). Holders of these NFTs will receive benefits such as a future 5% token allocation, with 50% unlockable on the day of TEG, and the remaining portion unlocking gradually over 6 months. Details about the whitelist are yet to be revealed, but users can check their eligibility on the official website.
megaETH is a popular Ethereum scaling solution that recently completed a $20 million seed funding round on June 27, 2024, with support from institutions and celebrities like Dragonfly, Robot Ventures, Folius Ventures, and Vitalik Buterin. In December 2024, it successfully raised $10 million in a community funding round on the Echo platform in just 3 minutes, reaching a valuation exceeding $200 million.
However, the NFT sale event by megaETH has stirred controversy in the community. Some believe that the fundraising is highly advantageous and are actively seeking whitelist spots outside the market. Others question whether megaETH’s actions constitute a disguised ICO, taking advantage of the current bull market to capitalize on the community early. Odaily Planet Daily will present both perspectives in this article for readers’ reference, without offering investment advice.
Pro: Reasonable Valuation, Worth Participating
The highlight of megaETH’s The Fluffle series NFT is the future 5% token airdrop allocation, which is seen as a “shell sale” activity by the community. If the project successfully sells all 10,000 NFTs, they would raise 10,000 ETH, approximately $27 million (assuming ETH price remains stable). With a 5% airdrop ratio, the token’s Fully Diluted Valuation (FDV) would be $540 million.
Considering the $30 million previously raised and the general token valuation trend of 20 times the financing amount, megaETH’s FDV would reach $1.14 billion. Supporters of megaETH argue that this valuation range is reasonable, offering potential returns of at least 10 times. Compared to other popular Ethereum scaling solutions like TEG, ZKsync ($4.2 billion), Starknet ($19.5 billion), and Blast ($2.7 billion), megaETH’s FDV is relatively lower and even below Starknet’s circulating market value of $660 million.
BMAN from ABCDE Venture expressed support for megaETH, praising their decision to give more tokens to the community than accepting a $1 billion offer from VCs. He views it as a valuable opportunity with asymmetric returns. Notably, megaETH’s co-founder, Bing Xiong, explained that offering tokens through NFTs was a way to involve the community in the project while addressing legal concerns.
Con: Mainnet Not Launched, Early Harvesting
On the other hand, skeptics in the community question megaETH’s $540 million valuation, believing it’s too high considering the mainnet launch is pending. They fear that the project is leveraging the current market conditions to profit before delivering the real product, potentially leading to abandonment post-funding. The ethical dilemma of prioritizing development over financial gain is raised in this context.
KOL Feng Mi raised concerns about megaETH’s NFT sale, criticizing the lack of focus on community experience. He suggests fairer token distribution methods rather than direct sales. KOL Feng Wu Xiang highlighted worries about the future airdrop ratio and observed differences in project focus between megaETH and other platforms like Monad.
ChainCatcher advises readers to approach blockchain with caution, be aware of risks, and exercise discretion when dealing with speculative token offerings. All content provided is for informational purposes only and does not constitute investment advice. If you encounter sensitive content, please report it for prompt action.
Source link
#MegaETH #retro #ICO #sparks #controversy #benefiting #community #harvesting #early
