MegaETH buys back 4.75% equity and token warrants from pre-seed investors

MegaETH, an Ethereum Layer 2 project targeting real-time transaction speeds, has bought back 4.75% of its stake, including equity and token warrants, from undisclosed pre-seed investors. Co-founder Shuyao Kong stated this unusual move, completed over the summer, was necessary because some investors were closing funds and the MegaETH team was the only available buyer in the absence of a secondary market. The buyback occurred at a valuation higher than its seed round, where MegaETH raised $20 million at a nine-figure token valuation. Kong emphasized that the buyback optimizes ownership before the public launch, ensuring aligned ownership and keeping the capitalization table clean. MegaETH is preparing for its mainnet and token launch later this year, which will include a public token sale via Cobie's Sonar platform.

(Source：The Block)