MegaETH-based crypto derivatives trading app Euphoria raises $7.5 million in seed funding from over 100 investors

Euphoria, a MegaETH-based crypto derivatives trading app under development, has raised $7.5 million in seed funding, aiming to become a "breakout" consumer app for the crypto market.

The $7.5 million raise includes a $2.5 million pre-seed round raised in November 2024 and a $5 million seed round raised between February and July this year, Nathan Worsley, co-founder and CEO of Euphoria, told The Block. Structured as a simple agreement for future equity (SAFE) with token warrants, the rounds bring Euphoria’s post-money equity valuation to the "upper 8 figures," Worsley said.

The seed round was led by Karatage, with Figment Capital and Robot Ventures — both pre-seed co-leads — also following on. Other participants included Bankless Ventures, First Commit, Hash3, Comfy Capital, and Kosmos Ventures, as well as more than 100 angel investors. Notable angels included Kain Warwick (Infinex), Santiago Santos (Inversion), Sanat Kapur (Dragonfly), Frank Chaparro (GSR), Steven Zheng (The Block), Daryl Lau (LayerZero), Sandra Leow (Kaito), Ogle (Glue / World Liberty Financial), and Gabriel Haines.

"This was not a mass allocation through a launchpad or pooled syndicate," Worsley said. "Our investor base is intentionally curated for their strategic value, network, and ability to directly help us make Euphoria a breakout success."

What is Euphoria building?

Euphoria is building a mobile app that aims to simplify crypto derivatives trading, such as options and perpetuals, for everyday users. Worsley said the idea came after trying and failing to explain how derivatives work to friends. Most people, he realized, aren’t going to learn order books or margin. So Euphoria is developing a “tap trading” interface that lets users make bets with simple steps, skipping the usual technical complexity. The goal is to lower the barrier to entry by making derivatives trading feel familiar and accessible.

"On a 'standard' derivatives trading user experience, your success is not simply about making the right call; it’s also about knowing how to set order types, manage collateral, calculate leverage, and manage and track risk throughout the lifespan of the position," said Worsley. "On Euphoria, you simply look at the chart, see the price line moving, and tap the square on the grid that you think the price will hit next."

As for why derivatives versus spot trading, Worsley said crypto derivatives remain the dominant force in digital asset markets, accounting for nearly 80% of all crypto exchange activity. "We saw a clear gap in the market for them to unlock an entirely new user segment, just as Robinhood did with stock options," he said.

"Much like how Robinhood transformed traditional options trading into a $265 million-per-quarter revenue stream by simplifying the experience, Euphoria is reimagining crypto derivatives for the mobile-native and socially driven generation of traders," Worsley added.

Euphoria’s business model is similar to Hyperliquid, Worsley said, generating revenue through in-house market-making operations and trading fees.

Euphoria is expected to launch its tap trading product on the MegaETH mainnet later this year. When asked if there are plans to expand to more blockchains, Worsley said the team’s focus for now is solely on MegaETH.

Earlier this week, the Global Token Exchange (GTE) — a decentralized trading venue that had planned to launch on the MegaETH blockchain — announced it was leaving the “Mega Mafia” incubation program. While the program focused on supporting zero-to-one stage projects, GTE said it is now focused on scaling from “one to one hundred.” It’s unclear whether this means GTE will no longer launch on MegaETH. When asked, GTE co-founder Enzo Coglitore told The Block: "GTE is committed to building the fastest exchange layer for internet-native markets. We’re actively evaluating multiple execution environments and will deploy where performance, flexibility, and user outcomes are maximized."

The Euphoria team currently has eight members. Worsley said he plans to add three to five key hires across engineering, product design, and growth. A native token launch is also part of the long-term roadmap, he added.

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