MegaETH Halts $1B Fundraise After Technical Glitches
MegaETH, an Ethereum Layer-2 scaling project, halted its planned $1 billion fundraising after multiple technical failures during its pre-deposit window. A misconfigured 4-of-6 Safe multisig, overloaded Sonar KYC APIs and strict rate limits triggered an early launch, contract oversubscription and deposit blocks.
Errors allowed deposits to exceed the original $250 million cap within minutes, prompting the team to freeze contributions at $500 million and cancel the $1 billion expansion. No funds were lost, and assets remain secure.
MegaETH will launch a withdrawal portal and tracing tools for refunds and credit participants with MEGA token rewards. The team plans a full post-mortem to fix configuration errors, API constraints and contract identifiers ahead of a relaunch.
Traders should watch implications for L2 token liquidity and USDm stablecoin adoption.
Bearish
MegaETH’s fundraising halt and technical failures undermine confidence in its protocol launch, likely putting downward pressure on MEGA token in the short term as traders react to project delays and operational risks. The oversubscription and cap freeze highlight configuration weaknesses that may deter new investors. However, the team’s commitment to asset safety, refunds and a full post-mortem could restore trust over time, supporting a neutral-to-bullish rebound once technical issues are resolved and the relaunch clears regulatory and operational hurdles. Overall, the news likely triggers short-term bearish sentiment for MEGA but carries neutral long-term impact conditional on the project’s recovery and stablecoin adoption progress.