MegaETH has hit a rough patch, and the team has decided to stop its plans to expand the token sale after a series of messy problems during launch.
MegaETH explained in several posts on X that it will not move forward with raising the pre-deposit cap from $250 million to $1 billion. Too many things went wrong at the same time, and the team said the whole experience “was not acceptable.” A withdrawal page is on the way for anyone who wants their money back.
A big raise derailed by technical failures
The launch issues came from a mix of mistakes and outside system failures. MegaETH said there were:
- A misconfigured multisig wallet
- Slow multisig updates
- Overloaded KYC (Know Your Customer) systems
- Rate limits from its KYC partner Sonar that caused long delays
Because of this, the pre-deposit window opened earlier than intended, deposits were blocked for many people, and everything filled up almost instantly. When the team tried to increase the cap, more things broke.
At one point, a wrong sale identifier in the pre-deposit contract needed a 4-of-6 multisig fix. Meanwhile, Sonar’s systems kept rate-limiting users and causing more downtime.
When the team finally pushed fixes live, the sale reopened at a random moment. People who were refreshing the page nonstop got in instantly, while others didn’t even know the deposit window had opened again.
The team tried raising the cap again — first to $400 million and then to $500 million — but the contract was already overfilled before those changes even took effect.
What the sale was supposed to do
This pre-deposit event was meant to help fund MegaETH’s mainnet launch. KYC-approved users could deposit USDC and later receive USDm, the project’s upcoming stablecoin built with support from Ethena.
The early depositors would also earn reward multipliers tied to the MEGA token. The initial limit was set at $250 million, with no individual cap on how much someone could deposit.
Users want answers — refunds are coming
Because of the chaotic launch, many users are now asking for refunds. MegaETH said that withdrawals will be available soon, and people will still keep the credit that counts toward their future rewards.
The team also said it will release a full post-mortem that breaks down what happened and how they plan to avoid these problems during the next launch phase.
