MegaETH

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MEGA

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 <a href="https://x.com/megaeth/status/1993395774164488361" rel="noopener noreferrer nofollow" target="_blank">said</a> 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.
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 <img alt="MegaETH scraps $1B plan after technical failures derail sale" src="https://s3.cointelegraph.com/uploads/2025-11/019abcaf-5eef-73be-b153-3458eb8c404a" title="">
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 Source: <a href="https://x.com/megaeth/status/1993349867343675687" rel="noopener noreferrer nofollow" target="_blank">MegaETH</a>
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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.
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 <img src="https://s3.cointelegraph.com/uploads/2025-11/019abcad-3418-7069-9e6c-3b3208664c04" title="" alt="MegaETH scraps $1B plan after technical failures derail sale">
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 Source: <a href="https://x.com/AzFlin/status/1993394029275586795" rel="noopener noreferrer nofollow" target="_blank">AzFlin</a>
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Related: <a href="https://cointelegraph.com/news/aztec-launches-actually-decentralized-and-private-eth-l2-mainnet-almost" rel="noopener noreferrer nofollow" target="_self">Aztec launches decentralized and private Ethereum L2 on mainnet, almost</a>
<h2 id="megaeth-s-oversubscribed-auction-recap">MegaETH’s oversubscribed auction recap</h2>
The pre-deposit window came on the heels of <a href="https://cointelegraph.com/news/megaeth-token-sale-oversubscribed-by-8-9x-with-450m-committed" rel="noopener noreferrer nofollow" target="_self">MegaETH’s MEGA token auction</a>, which opened on Oct. 27 and was fully subscribed within minutes.
That sale 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 on Oct. 30, ultimately drawing more than <a href="https://cointelegraph.com/news/zkpass-megaeth-momentum-token-sales-oversubscribed" rel="noopener noreferrer nofollow" target="_self">$1.3 billion in commitments</a> and becoming one of the year’s most crowded raises.
Because contributions far exceeded the cap, MegaETH said it would rely on a “special allocation mechanism” to determine the amount each participant ultimately receives.
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 <img alt="ICO" src="https://s3.cointelegraph.com/uploads/2025-11/019abcc0-fd7c-77c2-b4aa-854fae70ea64" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://sale.megaeth.com/" rel="noopener noreferrer nofollow" target="_blank">MegaETH</a>
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MegaETH is built by MegaLabs, a team backed by major industry figures including Ethereum co-founders Vitalik Buterin and Joe Lubin.
Following its testnet launch in March, the project is now targeting 100,000 transactions per second with sub-millisecond latency. The MEGA token is set to launch in early 2026.
Magazine: <a href="https://cointelegraph.com/magazine/megaeth-launch-could-save-ethereum-but-at-what-cost/" rel="noopener noreferrer nofollow" target="_self">MegaETH launch could save Ethereum… but at what cost?</a>

MegaETH scraps $1B plan after technical failures derail sale

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