The decentralized exchange GTE will leave the MegaETH ecosystem! An AppChain may be launched in the future, with the shadow of Paradigm behind it.

The cryptocurrency circle (120BTC.COm) news: The official ecological incubation team of Ethereum Layer2 MegaETH, MegaMafia, recently announced that the star decentralized exchange GTE( Global Token Exchange) has left MegaMafia. MegaMafia stated: MegaETH is a permissionless blockchain. MegaMafia is an incubator from zero to one. GTE is no longer part of Mafia. I am excited to witness and support their tremendous growth. We will continue to cheer for GTE's success from the sidelines.

GTE's officials stated: GTE has grown up and is now leaving MegaMafia. GTE has raised over $25 million from top investors like Paradigm and market makers such as IMC, Wintermute, and Auros. A lean team has been formed, with members from institutions like Citadel, Nasdaq, Google, Jump, AWS, Palantir, and Meta. First-class products have been delivered, and over 1 million users have been covered on the testnet in the past 3-4 months, with the next step being the mainnet.

Insiders Reveal GTE May Launch AppChain

The meaning behind this announcement is also hotly debated, with many people suggesting that GTE seems to be leaving not just the MegaMafia incubator, but also the MegaETH ecosystem. The next step is not to migrate to another chain, but to launch its own AppChain, and it seems to be highly related to Paradigm, which invested $15 million in GTE in a separate Series A round. In the past, GTE had a close relationship with the MegaETH team, and even the interview video of MegaETH's co-founder was filmed during the visit of GTE co-founder Enzo.

It is worth noting that someone asked whether this means that GTE will not launch on MegaETH, or if it is just graduating from the incubator and will still be in the MegaETH ecosystem. Bread, the community manager of MegaETH, replied: Mafia does not have a graduation system, which seems to confirm that MegaETH has left the MegaETH ecosystem.

The attention trading platform Noise of MegaETH has announced the launch of GTE attention trading, where GTE's attention market share can be traded. Additionally, for investors, it may be worth paying attention to who will replace GTE in MegaETH's market share.

KOL: The MegaMafia incubation method will only leave behind bad projects

KOL Mosi directly points out that the ecosystem construction method of MegaETH is unworkable, because the larger the project scale, the stronger their motivation to leave MegaETH becomes. When a project reaches a certain scale, they will think that since they can retain this value, why should they allow the public chain to earn sorter fees. Another major issue is when a project relies on the yet-to-be-launched infrastructure (MegaETH) to deliver its own product, which introduces additional and uncontrollable execution risks.

He stated that the incubation method of MegaETH initially seemed symbiotic, as the project needed financing, and MegaETH also needed ecosystem project financing to appear successful. However, when the project began to establish its own relationships in the industry, it realized it might no longer need MegaETH. Projects that have already garnered investor favor will realize that they are, to some extent, limited by the success of the public chain token; if the public chain performs poorly, they cannot survive either. Therefore, good projects often choose to leave, leaving behind the worst projects.

Mosi pointed out that the more successful a Web2 product is, the less important it is whether it is incubated by YCombinator. The same goes for MegaETH. Any serious entrepreneur does not want others to reap huge benefits from their projects. He personally is not optimistic about GTE or any Megaeth projects, even describing MegaETH as the next Scroll, and GTE will not be the only project to leave.