MegaETH announced the closure of Mega Mafia, the business incubator under the flag. The company disclosed that the project would not proceed after two years of operation and two periods of completion, and that the existing selected projects would still receive follow-up support but would not start phase III.
Two tranches of project financing in excess of $80 million
Mega Mafia supported about 20 start-up companies in two phases of the project. Together, these projects have completed over $8 million in financing, covering the seed front, seed and A cycles.
Shuyao Kong, co-founder of MegaETH, stated that the team had not only previously provided mentor resources but had also invested in engineering support, security audits, marketing, direct lending, liquidity schemes, and management reorganization, product diversion and M & As assistance. She also stated that the early product orientation of five of the projects had been set up with the participation of the MegaETH team, which had then introduced a large wind projector.
Unlike most incubators, Mega Mafia does not collect equity, governance or ownership shares. MegaETH originally determined that the founding team would naturally be in line with its network.
The project grew and turned to other chains.
This judgement was ultimately not fulfilled. Kong indicated that after growing up, some of the best-performing projects chose alternative routes and did not continue to build around MegaETH.
Examples mentioned include the decision of Global Token Exchange (GTE) to introduce a chain of own-owned blocks; the move of Noise to Base; the approach of Hellotrade to Monad; and the stabilization currency project Cap, which was extended to a multi-chain strategy after MegaETH was online.
Kong claims that Mega Mafia is perhaps one of the strongest incubation projects in the current cycle, but that the real return to MegaETH is not of much value.
Redirect resources to build-up OMEGA applications
MegaETH will then shift the focus to self-build OMEGA applications and develop the first-party consumer products around its block chains, wallets and stable currency infrastructure.
In the company ' s view, self-employed products facilitate direct access to users, obtain product feedback more quickly and keep more value within the MegaETH ecology rather than flowing to other chains.
This adjustment took place after its currency and stabilization operations advanced. It was mentioned that the Mega Mafia project had helped MegaETH to reach the milestone required for the release of MEGA coins in April this year. At the same time, MegaETH also launched the MEGA currency buy-back programme, which is financed from revenues generated by the ecosystem of the USDm stable currency.
Industry contraction continues.
It was also mentioned that a number of encryption companies had also contracted in the recent past. Ctrl Wallet will be permanently closed on 3 August; AscendEX announced the suspension of the exchange and referred to the market environment and the pressure brought on by EU MiCA regulation; Zapper also plans to close the website, mobile applications and API on 3 August; YGG Play will cease operations and downsize 35 people on 1 August.
It was also reported that Summer.fi was also phasing out after a $6.1 million security incident and that the company claimed that the related financial losses had made it difficult to continue operations.