DeFi Faces Scalability Issues as MegaETH Withdraws from $1 Billion Fundraising

Bitget App

Trade smarter

Bitget

News

Markets

DeFi Faces Scalability Issues as MegaETH Withdraws from $1 Billion Fundraising

Bitget-RWA2025/11/25 22:56

By:Bitget-RWA

- MegaETH abandoned its $1B fundraising after technical failures disrupted the pre-deposit phase, including KYC errors and premature multisig execution. - The glitches allowed deposits to exceed $500M, with users exploiting website refresh spam to secure token allocations despite no asset risks. - Community reactions were mixed, praising transparency but criticizing inadequate testing, as the project now faces scrutiny over scaling capabilities. - MegaETH plans refunds and withdrawals after a prior oversub

MegaETH, an

Ethereum

layer-2 solution, has

called off its $1 billion fundraising initiative

following a string of technical issues during its pre-deposit period that disrupted proceedings and compelled the team to suspend the sale. The event, described as a "cascade of technical failures," involved misconfigurations in the Know Your Customer (KYC) process and an unintended early execution of a Safe multisig transaction. This led to the fundraising surpassing its planned $250 million ceiling and ultimately freezing deposits at $500 million.

DeFi Faces Scalability Issues as MegaETH Withdraws from $1 Billion Fundraising image 0

MegaETH stressed that user funds remained safe throughout the ordeal but acknowledged that the team did not meet its own expectations. "

Assets were never in jeopardy

, but that is beside the point; we hold ourselves to a higher standard and offer no excuses," the team commented. The incident has drawn a range of responses from the community. Some commended the openness of the post-mortem, while others pointed out the lack of adequate preparation.

AzFlin, a developer and DAO founder

, remarked that more thorough testing could have prevented these mistakes.

This setback follows an

overbooked MEGA token auction

held in late October, where 5% of the total 10 billion tokens were sold within minutes. Bids ranged from $2,650 up to $186,282, with a voluntary one-year lock-up granting a 10% discount. The pre-deposit phase was intended to capitalize on that momentum, but the technical setbacks have forced MegaETH to change course. The team has announced that a retroactive update and withdrawal option will be made available soon.

MegaETH’s recent difficulties underscore the obstacles DeFi projects encounter as they expand their technical infrastructure. The protocol, which seeks to offer ultra-fast block processing akin to Web2 platforms, is now under scrutiny regarding its capacity to manage large-scale operations without major errors.

---

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

- Texas becomes first U.S. state to allocate $5M in public funds to Bitcoin via BlackRock's IBIT ETF, purchasing at $87,000 per BTC. - The temporary investment aims to diversify state reserves and hedge inflation, with plans for direct self-custody pending 2026 RFP. - Governor Abbott's June 2025 legislation established a $10M Strategic Bitcoin Reserve, positioning Texas as a crypto policy leader alongside gold and Treasuries. - While boosting ETF inflows and attracting institutional interest, critics warn

Bitget-RWA•2025/11/26 03:56

Bitcoin Updates: Texas Adds Digital Gold to State Reserves, Leading the Way in Crypto Protection

Fed Faces Balancing Act Between Inflation and Employment Amid Political and Market Scrutiny

- Fed officials remain divided on a December rate cut amid conflicting inflation and labor market signals. - Boston Fed's Collins opposes cuts, citing persistent inflation risks despite recent 119,000 jobs gain and 4.4% unemployment. - Trump's tariff-driven policies face criticism for sustaining high prices, mirroring Biden's inflation challenges. - Crypto sector shows resilience with $4.6B Q3 VC funding, as regulators push for digital asset tax clarity under Trump . - Fed's December decision will balance

Bitget-RWA•2025/11/26 03:56

Fed Faces Balancing Act Between Inflation and Employment Amid Political and Market Scrutiny

Buffett Embraces AI: Berkshire Gains $1.4 Billion from Alphabet Investment

- Berkshire Hathaway earned $1.4B profit from its Alphabet stake as shares surged 19.2% in November, marking its 10th-largest holding at $4.33B. - Buffett's shift to tech stocks reflects Alphabet's AI/cloud expansion, including Gemini 3 AI model and $100B AI infrastructure fund. - Alphabet's $34% Google Cloud growth and $2B Turkey data center partnership highlight its enterprise AI dominance ambitions. - Market optimism boosts Alphabet's $4T valuation despite regulatory risks, with BNP Paribas upgrading sh

Bitget-RWA•2025/11/26 03:56

Buffett Embraces AI: Berkshire Gains $1.4 Billion from Alphabet Investment

Bitcoin Updates Today: Buddy's BTC Wager: The Ongoing Struggle in Crypto Between Downward Adjustments and Upbeat Expectations

- Prominent crypto investor Buddy reopens $18.63M BTC long position amid market volatility, signaling renewed confidence in Bitcoin's long-term potential. - Institutional adoption grows as KindlyMD holds 5,398 BTC ($681M) and Harvard increases ETF stake to $443M, while Japan/UAE tighten crypto regulations with 2026 liability rules and DeFi oversight. - BTC rebounds above $88K amid Fed rate cut speculation but remains 30% below October 2025 highs, with analysts divided on $60K-$200K 2025 price forecasts. -

Bitget-RWA•2025/11/26 03:56