MegaETH scraps $1B plan after technical failures derail sale

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MegaETH’s pre-deposit lawsuit unraveled connected Tuesday aft a cascade of method failures disrupted what was meant to beryllium a controlled opening for verified users.

In an X post, the squad said that configuration errors and rate-limit issues caused the platform’s Know Your Customer strategy to fail. The pre-deposit was an aboriginal model for verified users to fastener successful MEGA token allocations.

In summation to the KYC failures, a afloat signed Safe multisig transaction — prepared for a aboriginal headdress summation — was executed prematurely, allowing caller deposits to travel successful and pushing the rise past its intended $250 cardinal limit.

“The $250M headdress is filled by radical who were spamming refresh connected the Pre-Deposit Website and were capable to drawback the random opening time,” the protocol said.

MegaETH yet froze deposits astatine $500 cardinal and scrapped plans to grow the rise to $1 billion. A retro and a withdrawal enactment volition beryllium released shortly.

“At nary constituent were assets astatine risk, but that doesn’t matter; we expect higher of ourselves and determination are nary excuses,” the squad added.

MegaETH is an Ethereum layer-2 protocol designed to present ultra-low-latency artifact processing and throughput, comparable to a real-time Web2 application.

Some users praised MegaETH’s transparency successful explaining what happened, but others were acold much critical. AzFlin, a developer and DAO founder, argued that the mistakes could person been prevented if engineers had been much careful.

MegaETH’s oversubscribed auction recap

The pre-deposit model came connected the heels of MegaETH’s MEGA token auction, which opened connected Oct. 27 and was afloat subscribed wrong minutes.

That merchantability offered 5% of the 10-billion-token supply, with bids ranging from $2,650 to $186,282 and an optional one-year lock-up that provided a 10% discount.

The auction closed connected Oct. 30, yet drafting much than $1.3 cardinal successful commitments and becoming 1 of the year’s astir crowded raises.

Because contributions acold exceeded the cap, MegaETH said it would trust connected a “special allocation mechanism” to find the magnitude each subordinate yet receives.

MegaETH is built by MegaLabs, a squad backed by large manufacture figures including Ethereum co-founders Vitalik Buterin and Joe Lubin.

Following its testnet motorboat successful March, the task is present targeting 100,000 transactions per 2nd with sub-millisecond latency. The MEGA token is acceptable to motorboat successful aboriginal 2026.

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