How MegaETH Scraps $1B Pre-Deposit Plan After Technical Failures

22m ago•

bullish:

bearish:

This article was first published on The Bit Journal: How operational missteps, strict KYC rate limits, and technical failures, such as an incorrect SaleUUID, lead to a disorderly MegaETH pre-deposit plan.

The highly anticipated MegaETH pre-deposit plan will not be proceeding to Mainnet after the pre-deposit campaign flopped. This follows technical failures, including an incorrect SaleUUID, which derailed the token sale, leading to a surge of deposits beyond the planned limits.

According to a post on the firm’s X account, the company has scrapped the $1 billion fundraising plan to launch a “Pre-Deposit Bridge”. It would now reverse the campaign that was aimed at preloading liquidity for USDm, the stablecoin that could anchor the network’s Frontier Mainnet.

The team cited technical failures and operational missteps, including an incorrect SaleUUID

Chaotic MegaETH pre-deposit Campaign

The MegaETH pre-deposit campaign before the Mainnet launch aimed to raise liquidity before the Mainnet, but third-party API’s were flooded by demands, which ended up crashing the website. When the website finally opened, the initial $250 million cap was filled in just 156 seconds. Unfortunately, the planned MegaETH pre-deposit campaign has turned out to be one of the most disorderly raise attempts of the year. The team stated:

“We’ve decided to return all funds raised from the Pre-Deposit Bridge. Execution was sloppy, and expectations weren’t aligned with our goal of preloading collateral to guarantee 1:1 USDm conversion at Mainnet.”

Reacting to the flood of deposits, the MegaETH pre-deposit team raised the cap to $1 billion. Still, in the process, they accidentally set a multi-sig transaction with an incorrect SaleUUID, requiring 4 out of 4 signatures instead of 3, allowing anyone to prematurely execute a $1 billion funding cap increase.

Technical Issues Led to a Sloppy Campaign

While that was happening, Sonar, the selected KYC provider handling identity checks, implemented a rather strict rate limit that blocked a large number of users, an action that cost the team over 20 minutes to identify and fix. As soon as the system was fixed, deposits occurred at random times, and new users who refreshed the page managed to fill the entire $250 million cap within minutes, leaving those who relied on official communications technically locked out. As a result, an X user named “chud.eth” signed the transaction 34 minutes before it was scheduled to go live.

The action triggered a flood of deposits, and by the time the MegaETH pre-deposit team tried to set a new $400 million cap, the deposits had exceeded the mark. The development team then attempted to set a new $500 million limit before announcing it would no longer move forward with the $1 billion cap. The X post by the MegaETH pre-deposit team stated:

“This was not acceptable. We encountered a variety of minor technical issues that, when compounded, provided a subpar user experience.”

Conclusion

The MegaETH pre-deposit campaign debacle will put immense pressure on the team whose Mainnet launch date was targeted for December. The team will have to work extremely hard to convince investors that the pre-deposit chaos linked to an incorrect SaleUUID and other technical issues won’t short-circuit the entire process.

Glossary to Key Terms

MegaETH: An Ethereum Layer-2 (L2) blockchain scaling solution designed to deliver high throughput and real-time performance for decentralized applications (dApps).

SaleUUID: A Universally Unique Identifier (UUID) used to specifically identify a particular token sale, pre-deposit, or fundraising event within a project’s technical infrastructure. It is a unique code that helps systems track and verify information related to a specific sale event.

USDm: A stablecoin, with specific projects like Mountain Protocol’s USDM and MegaETH’s USDm being prominent examples.

Frequently Asked Questions about MegaETH

What is MegaETH?

MegaETH is a Layer-2 scaling solution for Ethereum, often called “real-time Ethereum,” designed to improve transaction speed and reduce costs on the leading Ethereum network.

Is MegaETH compatible with existing Ethereum applications?

Yes, MegaETH is fully compatible with the Ethereum Virtual Machine (EVM), allowing developers to deploy existing Ethereum smart contracts and DApps without modification.

When will the MegaETH Mainnet and token launch?

The Mainnet beta is anticipated to launch in December 2025, with the Token Generation Event (TGE) expected in January 2026, when spot trading will likely begin on exchanges. However, only time will tell whether this will happen following the MegaETH launch debacle.