MegaETH scrapped its $1 billion fundraising plan after technical failures derailed the token sale, leading to a surge in deposits beyond the planned limits.

The pre-deposit campaign to raise liquidity ahead of its mainnet launch went south after demand flooded third-party APIs, crashing the website. When it finally opened, the initial $250 million cap was filled in just 156 seconds.

This story is an excerpt from the Unchained Daily newsletter.

That prompted the MegaETH team to raise the cap to $1 billion. However, the team accidentally set a multisig transaction to require 4 out of 4 signatures instead of 3 out of 4, allowing anyone to execute a $1 billion funding cap increase prematurely.

A user, who goes by “chud.eth” on X, signed the transaction 34 minutes before it was meant to go live.

This triggered a flood of new deposits, and by the time MegaETH attempted to set a new cap of $400 million, those deposits had exceeded it as soon as the transaction landed. 

The team then set a new limit of $500 million and announced it would “no longer move forward” with the $1 billion cap.

“This was not acceptable. We encountered a variety of minor technical issues that, when compounded, provided a subpar user experience,” said the MegaETH team in a post.