Multiple technical glitches during MegaETH’s early funding phase disrupted what was supposed to be a controlled token pre‑deposit event on November 25.
The team revealed in a post on X that configuration errors and rate‑limiting issues caused failures in the platform’s Know Your Customer (KYC) system.
A premature execution of a fully signed Safe multisig transaction, prepared for a later stage of the fundraising, opened the window for new deposits.
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That misstep allowed the raise to surpass the intended $250 million cap. Deposits climbed to $500 million before MegaETH halted the sale.
The protocol stated that no assets were ever in danger, yet acknowledged the team’s internal disappointment and lack of excuses for the ordeal.
The aborted pre‑deposit event followed a successful token auction. That initial sale, which launched on October 27 and concluded on October 30, offered 5% of MegaETH’s total 10-billion-token supply and drew more than $1.3 billion in commitments within minutes.
Bids ranged from $2,650 to $186,282, and purchasers were offered a 10 % discount for opting into a one‑year lock‑up.
After freezing deposits at $500 million and abandoning plans to hit the $1 billion target, MegaETH said it will enable retroactive allocations and withdrawal options for affected participants.
Reactions from the community were mixed. Some praised the team for explaining the failure. Meanwhile, developer and DAO founder AzFlin argued that better testing and preparation might have prevented the failure.
One participant recently claimed 60% of aPriori’s airdropped tokens. How? Read the full story.
