Megaeth Scraps $1b Plan After Technical Failures Derail Sale

Multiple technical failures during MegaETH’s pre-deposit phase pushed the raise beyond its limit and forced the team to halt the sale.

MegaETH’s pre-deposit event unraveled on Tuesday after a cascade of technical failures disrupted what was meant to be a controlled opening for verified users.

In an X post, the team said that configuration errors and rate-limit issues caused the platform’s Know Your Customer system to fail. The pre-deposit was an early window for verified users to lock in MEGA token allocations.

In addition to the KYC failures, a fully signed Safe multisig transaction — prepared for a later cap increase — was executed prematurely, allowing new deposits to flow in and pushing the raise past its intended $250 million limit.

“The $250M cap is filled by people who were spamming refresh on the Pre-Deposit Website and were able to catch the random opening time,” the protocol said.

MegaETH ultimately froze deposits at $500 million and scrapped plans to expand the raise to $1 billion. A retro and a withdrawal option will be released shortly.

“At no point were assets at risk, but that doesn’t matter; we expect higher of ourselves and there are no excuses,” the team added.

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

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

Related: Aztec launches decentralized and private Ethereum L2 on mainnet, almost

Source: CoinTelegraph