MegaETH’s $296M Presale: Crypto’s Big Scandal? 🤡💸

Key Takeaways

What were the presale rules?

Each user was allowed one wallet, a max bid of $186,000, and required KYC verification through Echo. 🧾✨ (Because who needs multiple wallets when you can just be one person? 🤷‍♀️)

How did some participants allegedly bypass these limits?

Some users may have used different KYC documents (e.g., from friends or family) to register multiple verified wallets. 🧑‍👩‍👧‍👦💸 (Because nothing says “I’m a legit investor” like using your cousin’s passport. 🧾)

The MegaETH presale, which went live on the 28th of October and sold out within minutes, is now facing scrutiny after on-chain analysts – Bubblemaps flagged signs of coordinated Sybil activity. 🧠🕵️‍♂️

Data indicated that more than 20 separate entities allegedly used multiple wallets to bypass the presale’s maximum allocation limits. 🧩💸 (Because why have one wallet when you can have 20? 🤯)

As expected, this has raised concerns about fairness and concentrated token ownership even before the project’s public debut. 🤔⚖️ (Because nothing says “fairness” like a bunch of wallets controlled by one person. 🧠)

Loopholes in MegaETH presale

On-chain investigators found that several participants bypassed the allocation limits despite the presale’s guardrails. 🛡️💥

The rules allowed only one wallet per user and capped bids at $186,000, with Echo handling identity verification. 🧾🔐 (Because who needs more than one wallet when you can just be a “verified” ghost? 👻)

However, data showed that some buyers used multiple KYC credentials to secure more than their permitted allocation. 🧾💸 (Because why have one identity when you can have a whole family tree? 🏡)

For example, the wallet 0x9f5c received funds from Kraken just a day before the presale. 🏦💸 (Because nothing says “I’m ready to invest” like borrowing from a friend. 🤝)

It then distributed those funds to three newly created wallets and coordinated a combined pledge of around $600,000 across four wallets-nearly three times the allowed limit. 🧮💸 (This is the crypto version of a con artist’s dream. 💸🕵️‍♂️)

What caused this mishap?

Researchers identified roughly 20 similar clusters. The issue appeared to stem from how KYC verification was applied. 🧾🕵️‍♂️

Although Echo required identity documents, some users reportedly submitted bids under multiple legal identities by using documents from associates or relatives. 🧾👨‍👩‍👧‍👦 (Because why have one identity when you can have a whole clan? 🏡)

The Intel Desk is reviewing the investigation. Token holders can vote to escalate the case for deeper scrutiny. 🧠🗳️ (Because nothing says “democracy” like a vote on whether someone’s a scammer. 🤡)

Meanwhile, both MegaETH Labs and Echo have been notified and may collaborate to map wallet linkages in greater detail. 🧩🔍 (Because nothing says “transparency” like a bunch of wallets linked to one person. 🤯)

Demand for MEGA tokens and more

This event happened alongside overwhelming demand for the MEGA token auction, which opened on the 27th of October as a 72-hour sale on Ethereum [ETH]. 🏦💸 (Because nothing says “demand” like a 72-hour sale. 🕒)

Although the auction technically remains open, the raise has already reached its maximum cap, with roughly $296 million in commitments at the top price, creating demand of about 5.9 times the available supply. 📈💸 (5.9 times the available supply? That’s like trying to buy a pizza when everyone’s hungry. 🍕)

Each bidder is allowed to lock their allocation for one year in exchange for a 10% discount. This locking mechanism is a requirement for U.S. participants. 🧾⏳ (Because nothing says “long-term vision” like locking your money for a year. 🤯)

For participants from other regions, it serves as an optional incentive. The sale is not conducted on a first-come-first-served basis. Final allocations will be determined after the bidding window closes on the 30th of October. 🕒💸 (Because nothing says “fairness” like a random draw. 🎲)

What’s more?

MegaETH will consider both “social and onchain criteria” when selecting participants, which may benefit users who are more engaged in the Ethereum ecosystem. 🐦💼 (Because nothing says “inclusivity” like checking your Twitter followers. 🐦)

The allocation and settlement process is expected to be finalized between the 5th and the 21st of November. During this period, participants will have the option to withdraw their bids if they decide to exit. 🚪💸 (Because nothing says “freedom” like being able to back out of a deal. 🤷‍♀️)

Overall, MegaETH’s token distribution signals a long-term ecosystem focus, with only 9.5% allocated to the team and the majority directed toward network growth and rewards. 🌱💸 (Because nothing says “growth” like giving 9.5% to the team. 🤯)

Meanwhile, broader market sentiment remains influenced by PolitiFi momentum, where tokens like Official Trump [TRUMP] and Melania [MELANIA] continue to attract speculative interest despite memecoins lagging the wider crypto sector. 🧠💸 (Because nothing says “speculation” like a token named after a former president. 🇺🇸)

2025-10-29 20:25