Part of the massive FUD surrounding
@MegaETH comes from the fact that they're actually in uncharted territory and there is no playbook for what they're trying to achieve.
They actually dared do something completely new, which means trying things that don't work and disappointment for participants with high expectations based on standard models.
They managed to make a hard decision for a better use of ressources and long-term outcome (see picture) but the timing couldn't have been worse with an already divided sentiment on execution.
Mega's reputation took a serious hit:
$MEGA holders and Flux depositors (I'm one of them) are in absolute shambles, apps jumping ships for bigger cheques (dirty), community trust suffered from it all.
Most projects fail because they can't adapt and/or give up.
And MegaETH is literally doing the opposite.
Because of how things unfolded, it is quite hard to be short-term bullish on MegaETH as a whole, but my bet is : it is because of the things they are taking heat for now that the team stands out and why they are more likely to succeed than most.
If team learns from their mistakes, doubles down on shipping quality innovative apps and keeps taking/acting on feedback, I think Mega will make it.
What I would like to see personally:
> Transparency on
$USDm (yield, buybacks) as I don't understand why the engine of Mega's innovative model is so opaque. Why hide the flywheel?
> Mega Mafia apps that stay on Mega if they received MegaETH $$
> Communication channels between team and community ( I believe should be addressed with new strategy mentioned by Bread)
In the meantime, I think it's good to keep a few things in mind:
> Excessive FUD blinds people to the valuation of
$MEGA, with one of the best P/E out there, sitting at $50M market cap for $7M annualized revenue.
> The real-time tech enables performances you cannot find ANYWHERE else in crypto. Apps like
@Euphoria_fi are only possible on MegaETH.
> The stats of the stress-test week in January proved MegaETH tech is far beyond any other product currently available.
>
$MEGA trading is currently speculative, but unlike the majority of chain tokens, it is a key component of the chain's architecture, and enables revenue streams that are completely new. Expect a violent repricing when they go live.
It's just mismanaged expectations, which are downstream of a shifting ecosystem and value accrual landscape.
To date, what we've done is a healthy mix of tried and net-new mechanisms.
New:
- Our own accelerator for app building on a chain that didn't exist yet
- How we approached raising (from everyday users)
- Opinionated tech that is (still) well-beyond the performance landscape of the entire crypto ecosystem and offers novel mechanisms (native oracle)
- Day 0 native stablecoin for value capture
Old:
- Terminal / Points program
- Broad ecosystem support (even if lower than more-mature and well-capitalized ecos)
A lot of the items from the "New" category was because we saw the change in tides for infrastructure coming, and aimed to get in front of it. The stuff in the "Old" category were attempts to preserve what has worked in the past.
With Terminal shutdown, we're acknowledging that crypto as it was, and the playbooks that come with it, don't fit in 2026 unless you're as-well capitalized as those same infra projects from the 2021 vintage.
Even then; the outcome of spending all of that time and energy while competing with massively capitalized and mature competitors is a an ecosystem with very little value capture for itself.
So we adjust, reflect, and enter the next era of Mega.
That does not mean crypto users are bad, or CT is extractive, etc, etc - it's just an acceptance that the path where we deviated from net-new outcomes and Mega value capture left too much out of our direct hands and we didn't like where that ended up. The numbers didn't make sense for us or our users.
Going forward we intend to have a more-focused approach on where we direct our time and energy, which includes focusing that time and energy on ourselves and what we can bring to market.
Some people are going to disagree with that (app teams included). That is fine. If what we were doing was consensus I'd be worried.
All of the decisions being made is because we see where crypto is headed and are in the unique position as a young ecosystem to fully embrace and mold towards it. We do that because we want to win.