MegaETH has canceled its plan to raise $1 billion after a surge of technical issues arose during its pre-deposit event. The team stated that these issues created a poor user experience and made the process unfair for many participants. MegaETH confirmed that no funds were ever at risk and will be opening a withdrawal page for users who wish to retrieve their money.
What Went Wrong During the Sale
MegaETH outlined the technical setup for the sale. The pre-deposit website was designed to send user information to Sonar, a service responsible for KYC verification. The pre-deposit contract managed sale times and caps, with all modifications controlled by a Safe multisig wallet. Only deposits with valid signatures were intended to be accepted.
— MegaETH (@megaeth) November 25, 2025
However, several critical problems emerged concurrently. The initial issue involved a mismatch in the SaleUUID, a crucial identifier linking the contract to Sonar. This incorrect value caused numerous early transactions to fail. Rectifying this required a multisig update, which significantly slowed down the process.
Subsequently, Sonar encountered difficulties due to an overly low rate limit. Heavy traffic led to verification failures, preventing users from depositing. The MegaETH team reported that it took over 20 minutes to identify and resolve this mistake.
Once the servers were restored, the sale was reopened at a randomized time to ensure fairness. However, users who were actively refreshing the page quickly filled the initial $250 million cap within moments.
Nice😆
MegaETH pre-deposit cap raise cancelled pic.twitter.com/eO3XxsIaWY
— Airdrop Official 🦇🔊 (@its_airdrop) November 25, 2025
The Failed Move to a $1 Billion Cap
MegaETH then planned to increase the cap to $1 billion in the following hour. However, the upgrade was initiated prematurely because any individual can execute a multisig transaction once sufficient signatures are collected.
This sudden change led to widespread confusion, with some users observing the new window while others did not. The team attempted to limit the raise to $400 million, and later to $500 million. By the time these transactions were processed, the cap had already been reached.
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.
How this decision impacts you:
— MegaETH (@megaeth) November 27, 2025
With KYC bugs continuing to prevent some users from participating, MegaETH ultimately canceled the $1 billion extension.
Market Implications
MegaETH has announced that it will continue to review the events and will present a new plan. This failure underscores how scalability challenges and user pressure can expose vulnerabilities in blockchain project launches. Market participants are now awaiting MegaETH's strategy for recovery and rebuilding trust. MegaETH had previously launched its USDM stablecoin with a pre-deposit bridge in late November.