MegaETH $500 million pre-deposit full refund, USDm cross-chain bridges postponed launch

Source: TokenPost Original Title: MegaETH, $500 million pre-deposit fully refundable… USDm bridge launch postponed Original Link: https://www.tokenpost.kr/news/blockchain/309375

Event Overview

The Ethereum Layer 2 project MegaETH announced that it will fully refund all pre-deposited funds. The pre-deposit activity conducted before the stablecoin USDm went live was chaotic due to technical failures and fairness issues, and the cross-chain bridging launch has also been delayed.

Event Details

MegaETH originally planned to provide a 1:1 exchange guarantee when launching on USDm, with a pre-storage limit set at $250 million. However, there was a gap between user expectations and the project's implementation capabilities, ultimately leading the project team to decide to refund all pre-stored amounts.

Refunds will be executed through the new smart contract that is currently under audit. The project party explained that an incorrect SaleUUID configuration at the start of the pre-sale caused transaction failures, and the fix requires a multi-signature (4 out of 6 people signing) update. Meanwhile, the strict access restrictions imposed by the KYC service provider Sonar have prevented many users from accessing it.

After the service was restored, users who repeatedly refreshed the page completed the pre-storage earlier than the time specified in the announcement, reaching the limit within a few minutes. In contrast, users who only relied on the official announcement were unable to participate. Subsequently, the project expanded the limit to 1 billion USD, but due to a multi-signature approval error, external users obtained approval rights in advance, resulting in over 400 million USD in funds flowing in.

The project attempted to raise the cap to $400 million and $500 million, but the system's processing speed could not keep up with the influx of funds, ultimately pausing the entire process. The project emphasized that user funds are completely safe and stated that “contributions will never be forgotten.”

Follow-up Plan

MegaETH indicates that USDm remains the core of the ecosystem and plans to restart the USDC-USDm cross-chain bridge before the launch of the Frontier mainnet to obtain liquidity and support users coming online. All subsequent information will be made public in accordance with regulatory compliance processes.

Similar Events

At the beginning of this month, a similar controversy occurred during the pre-storage activity of the stablecoin project Stable. It was discovered that some large wallets had deposited funds in advance before the pre-storage began, raising suspicions in the community about “front-running” and insider trading. The limit of $825 million was consumed within approximately 22 minutes.

Market Insights

Market Interpretation

The MegaETH incident once again highlights the issues of token pre-storage and fairness. Although blockchain systems have transparency, there are still many vulnerabilities in the pre-storage method at the operational level.

Key Points of the Strategy

The pre-storage participation strategy in the early stages of the project carries varying risks due to the timing of its announcement and execution methods. Referring to similar cases, it is crucial to verify a transparent timeline and technical stability.

Terminology Explanation

• Multi-sig (: A secure method that requires multiple signatures. Key actions such as fund withdrawals need approval from multiple parties before execution.
• Front-running ): The act of participating in a trade before ordinary users by leveraging internal information or technical advantages.
• Cross-Chain Bridge ( Bridge ): A smart contract system that connects different blockchains and enables asset cross-chain transfers.