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<h3>Fireline Report</h3>
<p>MEGAETH will repurchase 4.75% of its equity and options before the mainnet. 5% of the public tokens will be auctioned in an English-style auction on November 27th. The FDV range is $1M-$999M, with a minimum of $2650 and a maximum of $186282 per person. A 10% discount will be offered for locking up for one year.</p>
<h3>Trading Guide</h3>
<p>Driven by events, pay attention to the final auction price and oversubscription. If the FDV is higher than 500 million or the lock-up ratio is lower than 30%, be wary of short-term pullbacks.</p>
<p style="margin-top: 20px; text-align: left; opacity: 0.4; padding: 0 42px"><small>Updated at 10-23 13:33</small><br><small>AI-generated summary, not investment advice</small></p></div>

<h1>Analysis of MegaETH Equity Repurchase and Cobie Platform Public Offering Pricing</h1><h2> Key Points</h2><p> <strong>Equity Buyback</strong> : MegaETH completed a 4.75% equity and token subscription rights buyback in the summer of 2025, with a valuation higher than the $100 million FDV of the June seed round, aiming to optimize the equity structure and support a community-led token distribution strategy.</p><p> <strong>Public Sale Pricing</strong> : The Sonar platform created by Cobie will hold a 72-hour English auction from October 27th to 30th, with a starting price of $0.0001 (US$1 million in FDV) and a cap of $0.0999 (US$999 million in FDV), selling 500 million MEGA tokens (5% of the total supply).</p><h2> Equity repurchase details analysis</h2><h3> Repurchase core data</h3><p> MegaETH announced on October 17, 2025 that it had completed a share repurchase involving <strong>4.75% of the company&#39;s equity and corresponding token subscription rights</strong> . The transaction was with undisclosed <a href="https://www.theblock.co/post/375090/megaeth-buys-back-equity-token-warrants-pre-seed-investors">pre</a> -seed investors.</p><table><thead><tr><th> project</th><th> Details</th><th> Remark</th></tr></thead><tbody><tr><td> Repurchase ratio</td><td> 4.75%</td><td> Equity + token subscription rights</td></tr><tr><td> Trading Hours</td><td> Implementation in summer 2025</td><td> Announced on October 17</td></tr><tr><td> Buyback Valuation</td><td> More than $100 million FDV</td><td> The specific amount was not disclosed</td></tr><tr><td> Funding</td><td> Cash buyback</td><td> Source not disclosed</td></tr></tbody></table><h3> Repurchase motives and strategic intentions</h3><p> <strong>Investor exit pressure</strong> : Some pre-seed funds are facing liquidation and need to liquidate all holdings. Since MegaETH prohibits private secondary transactions, the team actively repurchases to avoid uncontrolled equity transfers <a href="https://www.bankless.com/read/news/megaeth-buys-back-equity-from-early-investors-the-block">.</a></p><p> <strong>Optimized ownership structure</strong> : Co-founder Shuyao Kong said: &quot;From day one, we have prioritized consistent ownership and long-term builders over transitory capital. When opportunities arise, we would rather withdraw supply from the market than let these shares float privately.&quot; <a href="https://cryptobriefing.com/megaeth-public-sale-hyperliquid/">cryptobriefing</a></p><p> <strong>Community-oriented transformation</strong> : This move cleans up the equity table for the upcoming Token Generation Event (TGE), reduces possible selling pressure from early investors, and creates a fairer token distribution environment for public offering participants.</p><h2> Analysis of Cobie Platform&#39;s Public Offering Mechanism</h2><h3> Pricing Range and Valuation Framework</h3><p> The Sonar platform (a product of the Echo ecosystem created by Jordan &quot;Cobie&quot; Fish) will use an English auction mechanism:</p><table><thead><tr><th> Price Index</th><th> Numerical</th><th> Corresponding FDV</th></tr></thead><tbody><tr><td> Starting Price</td><td> $0.0001</td><td> $1 million</td></tr><tr><td> Ceiling Price</td><td> $0.0999</td><td> US$999 million</td></tr><tr><td> Price increase</td><td> $0.0001</td><td> Each bid increase</td></tr><tr><td> Number of tokens</td><td> 500 million MEGA</td><td> 5% of total supply</td></tr></tbody></table><h3> Participation conditions and distribution mechanism</h3><p> <a href="https://cryptobriefing.com/megaeth-public-sale-hyperliquid/">Investment</a> <strong>threshold</strong> : Individual minimum investment is $2,650 and maximum is $186,282, ensuring that at least 5,000 participants receive the basic quota.</p><p> <strong>Priority allocation system</strong> : A &quot;U-shaped allocation&quot; model is used to determine priorities based on the following factors:</p><ul><li> History of on-chain activity (e.g., early Uniswap adoption, DeFi participation)</li><li> Social media engagement (Twitter interactions, Kaito ranking performance)</li><li> A sense of community (holding MegaETH Fluffle NFTs, CryptoPunks, etc.)</li></ul><p> <strong>Geographical restrictions</strong> : US accredited investors must accept a 1-year lock-up period and enjoy a 10% discount, while non-US investors can choose to lock in.</p><h3> Time Node</h3><table><thead><tr><th> stage</th><th> time</th><th> state</th></tr></thead><tbody><tr><td> Registration Open</td><td> October 15, 2025</td><td> in progress</td></tr><tr><td> Auction starts</td><td> October 27, 1:00 PM UTC</td><td> Coming soon</td></tr><tr><td> Auction ends</td><td> October 30, 1:00 PM UTC</td><td> 72-hour window</td></tr><tr><td> Mainnet launch</td><td> Q4 2025</td><td> expected</td></tr></tbody></table><h2> Social sentiment and market reaction</h2><h3> Community sentiment analysis</h3><p> <strong>High Optimism</strong> : Discussions on Twitter/X show overwhelming bullish sentiment, with community members expressing strong excitement and FOMO about the <a href="https://x.com/megaeth_labs/status/1980985518340125099">project</a> &#39;s community-driven launch. Discussions emphasize the accessibility of the public sale and the potential for retail investors, contrasting it with the traditional VC-led model.</p><p> <strong>Pricing Arbitrage Opportunities</strong> : Investors see the public offering as a rare opportunity for retail dominance, making participants the largest stakeholders after the launch. The response is optimistic, calling for maximum commitment due to preferential distribution based on on-chain activity, social engagement, and <a href="https://x.com/0xG00gly/status/1979458951528743417">NFT</a> holdings.</p><h3> Valuation Expectation Analysis</h3><p> <strong>Market Pricing Difference</strong> : Perpetual futures on Hyperliquid price $MEGA at $4.5-6 billion FDV, suggesting 4-6x upside relative to the cap. This gap fuels the &quot;free money&quot; narrative, as the team reportedly rejected higher VC offers to prioritize public <a href="https://x.com/DidiTrading/status/1981049076935446786">onboarding</a> .</p><p> <strong>Token Economics Expectations</strong> : The community sees equity buybacks as a strategic move to return tokens to the public, avoid VC overcapacity, and align incentives with users. Influencers emphasize how foundation revenue can fund ongoing $MEGA buybacks, positioning the token as a &quot;store of value&quot; backed by true on-chain <a href="https://x.com/nics_off/status/1981007236194283637">economics</a> .</p><h2> Project technical positioning and competitive advantages</h2><h3> Core technical indicators</h3><p> MegaETH is positioned as a “real-time” Ethereum L2, focusing on ultra-low latency and high throughput:</p><table><thead><tr><th> Technical indicators</th><th> MegaETH</th><th> Ethereum Mainnet</th><th> Arbitrum</th></tr></thead><tbody><tr><td> Block time</td><td> &lt;10ms</td><td> 12s</td><td> 250ms</td></tr><tr><td> TPS</td><td> &gt;100,000</td><td> 15</td><td> ~40</td></tr><tr><td> Latency Optimization</td><td> In-memory computing</td><td> Traditional architecture</td><td> Standard L2</td></tr></tbody></table><h3> Funding and investor structure</h3><p> <strong>Total raised</strong> : $57.73M, across four completed rounds, including an upcoming public offering that could add another $50M.</p><p> <strong>Core investors</strong> :</p><ul><li> <strong>Dragonfly Capital</strong> (lead seed investor)</li><li> <strong>Vitalik Buterin</strong> (Ethereum co-founder)</li><li> <strong>Cobie</strong> (Jordan Fish, founder of the Sonar/Echo platform)</li><li> Well-known institutions such as <strong>Robot Ventures and Figment Capital</strong></li></ul><h2> Conclusion and Outlook</h2><p> MegaETH&#39;s 4.75% stake buyback represents a rare pre-TGE operation for crypto projects, demonstrating the team&#39;s commitment to community alignment. Combined with the Cobie platform&#39;s democratized pricing range of $0.0001-$0.0999, this strategy aims to create a more decentralized token distribution model.</p><p> <strong>Key risks</strong> : Centralization risk of a single sorter, unproven large-scale performance <strong>Core opportunities</strong> : Huge market potential for real-time DeFi applications, strong endorsement from the Ethereum ecosystem</p><p> With its October 27th public auction approaching, MegaETH is laying the groundwork for its Q4 mainnet launch and token issuance, with its innovative community-first model potentially setting a new benchmark for L2 project launch strategies.</p>
