Key takeaways
What were the pre-sale rules?
Each user was allowed one wallet, a maximum bid of $186,000, and required KYC verification through Echo.
How did some participants supposedly overcome these limits?
Some users may have used different KYC documents (e.g. from friends or family) to register multiple verified wallets.
MegaETH pre-sale, which began on October 28 and sold out in minutes, now faces scrutiny from on-chain analysts – Bubblemaps marked signs of coordinated Sybil activity.
The data indicated that more than 20 different entities allegedly used multiple wallets to bypass pre-sale allocation caps.
Unsurprisingly, this has raised concerns about equity and concentrated ownership of the tokens even before the project’s public debut.
Source: Bubblemaps/X
Loopholes in MegaETH pre-sale
Chain investigators discovered that several participants exceeded allocation limits despite pre-sale guardrails.
The rules allowed only one wallet per user and limited offers to $186,000, with Echo handling identity verification.
However, the data showed that some buyers used multiple KYC credentials to secure more than their allowed allocation.
For example, wallet 0x9f5c received funds from Kraken just one day before the pre-sale.
He 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.
What caused this mishap?
The researchers identified approximately 20 similar groups. The problem seemed to arise from how KYC verification was applied.
Although Echo required ID documents, some users allegedly submitted bids under multiple legal identities using documents from associates or family members. This allowed multiple “verified” wallets to pass compliance checks while controlled by the same user.
Intel Desk is reviewing the investigation. Token holders can vote to escalate the case and subject it to deeper scrutiny.
In the meantime, both MegaETH Labs and Echo have been notified and can collaborate to map the wallet links in greater detail.
MEGA token demand and more
This event occurred alongside overwhelming demand for the MEGA token auction, which opened on October 27 as a 72-hour sale on Ethereum. [ETH].
Although the auction is technically still open, the increase has already reached its maximum limit, with barely $296 million in commitments at the maximum price, creating demand approximately 5.9 times available supply.
Each bidder can lock their allocation for one year in exchange for a 10% discount. This blocking mechanism is a requirement for US participants.
For participants from other regions, it serves as an optional incentive. The sale is not done on a first-come, first-served basis. Final allocations will be determined once the bidding window closes on October 30.
What is more?
MegaETH will consider “social and on-chain criteria” when selecting participants, which may benefit users who are more involved in the Ethereum ecosystem.
The allocation and settlement process is expected to be completed between November 5 and 21. During this period, participants will have the option to withdraw their bids if they decide to exit.
Overall, MegaETH token distribution indicates a focus on the ecosystem for the long term, with only 9.5% assigned to the team and the majority aimed at network growth and rewards.
Meanwhile, broader market sentiment continues to be influenced by PolitiFi momentum, where tokens like the official Trump [TRUMP] and melania [MELANIA] They continue to attract speculative interest even though memecoins lag behind the broader crypto sector.
Therefore, with MEGA holders still relatively limited Around 1.12K, both the token offering structure and current politically driven trading trends will be key factors to watch going forward.
