Ethereum layer-2 project MegaETH has taken a bold stance, revoking a $1 million MEGA token allocation from crypto influencer IcoBeast after they publicly discussed hedging their holdings.
The decision follows a violation of the project’s one-year lockup terms, which strictly prohibit resale, transfer, or hedging.
The influencer originally received the allocation from MegaETH’s massive public sale, which raised $1.39 billion from 53,000 bidders, representing 5% of the network’s total token supply.
In a post on X, IcoBeast stated they “need to figure out how to hedge this,” triggering the revocation.
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Protecting Long-Term Holders
MegaETH’s Chief Strategy Officer, Namik Muduroglu, emphasized that the rule is designed to safeguard regulatory compliance and protect committed token holders. Any participant signaling plans to hedge or resell would forfeit their allocation and receive a refund.
“With the sale 28 times oversubscribed, it made little sense to assign tokens to participants expressing intentions to sell before receiving them,” Muduroglu said.
He added that redistributing these allocations benefits long-term MEGA holders, reinforcing the project’s commitment to community stability.
Community reactions were mixed. Some argued that IcoBeast did not technically break the rule, merely commenting on hedging strategies. Others supported MegaETH’s decision, noting that only holders aligned with the network’s long-term vision should retain allocations.
Pre-market trading on Hyperliquid values MEGA at approximately $0.48, down 7.7% from the $0.525 mark when IcoBeast’s allocation was valued near $1 million. MegaETH has not disclosed whether similar allocation revocations have occurred elsewhere.
