James Richardson
Ethereum Layer 2 project MegaETH, aiming to deliver real-time transaction speeds, has repurchased 4.75% of its equity and token warrants from early investors. Co-founder Shuyao Kong told PRIME that the buyback included stakes from pre-seed investors and represents a rare move before the projectโs mainnet and token launch, expected later this year.
The financial terms of the deal, including total size, valuation, and financing details, remain confidential. Kong confirmed the buyback occurred at a valuation above MegaETHโs seed round, which raised $20 million at a nine-figure token valuation.
When asked why certain investors exited before the token launch, Kong explained: “Some funds shut down and sought to liquidate all positions. Since MegaETH does not permit secondary sales, the team was the only buyer available.” The buyback, conducted over the summer, was approved by key stakeholders including Dragonfly and Echo, and complied with all governance and legal requirements.
Strategic Purpose of the Buyback
Unlike most crypto projects that repurchase tokens post-launch through treasury-funded market buys, MegaETHโs early buyback was intended to optimize ownership and maintain a clean cap table. Kong emphasized: “From day one, we prioritize aligned ownership and long-term builders. Removing these shares from circulation ensures incentives remain tight and the mission stays clear.“
Previous Fundraising and Upcoming Token Sale
MegaETH has already conducted two community funding rounds. The Echo round last December raised $10 million in under three minutes at the same nine-figure valuation as its seed round. The Fluffle NFT sale generated over $13 million through non-transferable โsoulboundโ NFTs.
The project also plans a public token sale on Cobieโs Sonar platform, with registration open from Oct. 15 to Oct. 27. Kong did not disclose the target raise but promised details will be shared soon. MegaETH is currently in its final testnet phase, with the mainnet and token generation event on the horizon.
