Simply put
- Cryptocurrency influencer IcoBeast had its $1 million MegaETH token allocation canceled on Sunday.
- The reason for the revocation is that IcoBeast publicly posted that it was attempting to hedge its MEGA allocation, violating the rules regarding the one-year lock-up period.
- The Ethereum Layer 2 Network token is currently trading at $0.48 in the pre-market, slightly lower than when the influencer picked up the token.
Debut soon Ethereum layer 2 network Mega ETH Along with crypto influencers and Kalsi, we are revoking token allocations from people looking to sell or hedge their allocations. employee IcoBeast is a notable victim of this policy.
MegaETH on Sunday removed approximately $1 million of IcoBeast’s allocation based on pre-market predictions as IcoBeast indicated it would be unloading baggage.
“Oh, I really have to think of a way to get around this,” says an influencer I wrote to X.
MegaETH conducted a public sale of 5% of its token supply two weeks ago. I was attracted to $1.39 billion from 53,000 bidders. The network then carefully selected who to grant the tokens to based on whether the user is active within the MegaETH community and likely to remain a long-term holder.
IcoBeast said he was one of the lucky few selected for token allocation.
According to Namik Muduroglu, MegaETH CSO, IcoBeast’s post violated the rules regarding the one-year lock-up period agreed to by influencers, and IcoBeast’s allocation was revoked.
“MegaETH sale participants who have locked their tokens for a period of one year must (i) acquire the tokens in their accounts without any intent to resell or transfer them, and (ii) refrain from any transfer, resale, or hedging transactions that violate applicable law,” Muduroglu said. I wrote to X. “Anyone who takes to Twitter to openly discuss their plans for OTC and hedge their positions will receive a refund and their allocation will be reduced to zero.”
MegaETH did not respond decryptionwould like to comment on whether this rule affects other users.
Reactions to the move were mixed. some people discussed IcoBeast didn’t break any rules, he just got an idea. meanwhile others We believe it was the right move to only allow assignments to users who we knew were not going to try to sell right away.
“The sale was oversubscribed 28 times. It makes no sense to allocate tokens to those who want to sell them before receiving them,” Muduroglu explained. “It would be better for MegaETH and other MEGA holders to allocate these tokens to people who are bullish on MEGA and willing to hold them at least for the lock period they requested.”
pre-market trading superfluidity The MEGA token is currently valued at $0.48, down 7.69% from $0.525 when IcoBeast announced that the allocation was approaching $1 million, but pre-market trading is often wrong as traders speculate on the value of a token without knowing many factors.
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