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Polymarket Secures CFTC Approval for Regulated U.S. Operations

By
Paul Ugbede Godwin
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0

Polymarket announced that the U.S. Commodity Futures Trading Commission (CFTC) has issued an Amended Order of Designation, allowing the platform to operate as a fully regulated, intermediated prediction market exchange in the U.S.

This marks a significant milestone, enabling Polymarket’s formal re-entry into the American market after a three-year hiatus imposed by regulatory scrutiny. Polymarket, the world’s largest prediction market platform, exited the U.S. in 2022 following a CFTC enforcement action.

The regulator fined the company $1.4 million for operating an unregistered derivatives platform offering event-based binary options without proper designation as a contract market or swap execution facility.

To pave the way for compliance, Polymarket acquired CFTC-licensed entities QCX LLC, a designated contract market and QC Clearing, a derivatives clearing organization in July 2025 for $112 million.

This acquisition positioned Polymarket to integrate with traditional financial infrastructure, including enhanced surveillance, clearing systems, and Part 16 reporting—standards required for Designated Contract Markets (DCMs) under the Commodity Exchange Act.

The approval reflects a maturing regulatory environment for prediction markets, which use blockchain to let users bet on real-world outcomes like elections, sports, or economic events. U.S. users can now trade through registered Futures Commission Merchants (FCMs) and brokerages, bypassing the need for VPNs or offshore workarounds.

This aligns Polymarket with established U.S. futures trading channels. As a DCM, Polymarket must adhere to self-regulatory obligations, market supervision, and customer protections, fostering trust and attracting institutional players.

Expect increased liquidity, volume, and mainstream adoption. Polymarket already handles ~40% of global prediction market volume, with $3B+ traded in November 2025 alone. Partnerships with UFC, NHL, Yahoo Finance, and Google underscore its growing influence.

Recent collaborations, like with PrizePicks, an FCM, signal sports and event markets will proliferate. Shayne Coplan, Polymarket’s Founder and CEO, stated: “This approval allows us to operate in a way that reflects the maturity and transparency that the U.S. regulatory framework demands. We’re grateful for the constructive engagement with the CFTC and look forward to continuing to demonstrate leadership as a regulated U.S. exchange.”

This greenlight could catalyze the prediction market sector, valued at billions in 2025 bets across politics, pop culture, and finance. It sets a precedent for crypto-native platforms to bridge with TradFi, potentially inspiring similar approvals elsewhere in Africa for stablecoin integrations.

On X, users are buzzing about retail trader access, on-chain liquidity boosts, and an impending $POLY token airdrop, with some calling it an “explosive setup” for 2026. In contrast, rival Kalshi faced setbacks, with a Nevada court blocking its sports markets on the same day.

Polymarket’s move positions it as the frontrunner in regulated event trading. Additional processes for intermediated trading are being rolled out ahead of a full launch, expected soon.

U.S. participants can now access Polymarket through registered Futures Commission Merchants (FCMs) and brokerages, eliminating the need for VPNs or offshore proxies that were common workarounds since the 2022 ban. This aligns Polymarket with established channels like those used for futures trading, potentially onboarding millions of non-crypto users via familiar platforms.

With brokerages able to offer Polymarket contracts directly, trading volumes—already at $3 billion in November 2025—could explode, tightening spreads and improving price efficiency. Partnerships like the recent one with PrizePicks (an FCM) signal rapid rollout of sports and event markets, while integrations with NHL and UFC could drive daily active users.

Everyday traders gain legal, compliant exposure to real-time event probabilities (e.g., “Will the Fed cut rates in December?” or “Will Boeing face charges?”), turning prediction markets into a mainstream tool for hedging personal risks.

The approval removes regulatory barriers for hedge funds, trading firms, and liquidity providers, allowing them to use prediction markets for hedging macro events, geopolitical risks, or corporate outcomes. This could position Polymarket as a “shadow oracle” for Wall Street, where probabilities inform portfolio decisions faster than traditional forecasts.

By connecting crypto-native innovation with regulated infrastructure, Polymarket becomes the first on-chain platform fully embedded in U.S. capital markets. Analysts predict it could evolve into a standalone asset class alongside equities and options, with potential for tokenization of contracts.

Polymarket now leads rivals like Kalshi which holds 62% of U.S. volume as of mid-November 2025 but faced a sports market setback in Nevada. This could consolidate market share, with Polymarket’s global dominance 40% of worldwide volume amplifying U.S.-specific growth.

NNPCL’s Revenue Soars to N45tn in 2024, But Financial Statement Reveals Troubling Details

By
Samuel Nwite
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0

The Nigerian National Petroleum Company Limited posted one of the strongest revenue years in its history, generating N29.21 trillion from crude oil sales in 2024 — more than double the N14.07 trillion reported in 2023.

The company’s newly released audited financial statements show a sweeping rise across nearly every revenue stream, driven by increased crude production, stronger export flows, and a widening network of international buyers.

Total revenue from customer contracts climbed to N45.08 trillion in 2024, sharply up from N23.99 trillion the previous year, with crude oil contributing the largest share. Petroleum product earnings rose from N7.15 trillion to N9.68 trillion, while natural gas revenue jumped to N5.20 trillion from N2.30 trillion. The services segment, which covers seismic work, marine operations, engineering services, and gas transmission fees, also grew significantly to N980.46 billion from N464.94 billion.

The revenue surge reflects a company that appears to have moved past its historically lackluster performance. However, analysts who reviewed the financial statements note that, despite the impressive rise, NNPCL’s earnings still pale compared with global peers. They point out that the company’s 2024 revenue is only about three percent of Saudi Aramco’s 2024 turnover. The contrast underscores the scale gap between Nigeria’s national oil company and the world’s dominant state-run producer, even though both have access to vast reserves.

Nigeria remained NNPCL’s strongest market, contributing N34.41 trillion in 2024, nearly double the N18.29 trillion posted in 2023. Crude sales within Nigeria amounted to N19.59 trillion, petroleum products N9.68 trillion, natural gas N4.16 trillion, services N973.45 billion, and power N9.42 billion.

Outside Nigeria, Switzerland led the pack with N2.14 trillion in revenue, driven almost entirely by crude liftings of N2.12 trillion. Spain generated N1.40 trillion, the UAE N1.26 trillion, France N1.19 trillion, Singapore N979.90 billion, and the UK N743.90 billion, lower than the N993.72 billion recorded in 2023. Smaller or new markets such as Italy, Vietnam, and Cyprus surfaced in 2024, signaling ongoing diversification in export destinations.

At the standalone company level, NNPCL earned N19.66 trillion in 2024, more than double the N8.13 trillion recorded the previous year. Crude sales rose from N7.03 trillion to N17.39 trillion, natural gas from N951.61 billion to N2.10 trillion, and petroleum products from N151.79 billion to N158.81 billion. Panama unexpectedly emerged as the largest revenue source for the standalone entity, contributing N14.77 trillion, mostly from crude shipments. Nigeria followed with N4.85 trillion, and Ghana delivered N37.54 billion.

Most group revenue — N40.49 trillion — was recognized at a point in time, indicating revenue was booked once control of crude, gas, or petroleum products passed to buyers. The remaining N4.58 trillion was recognized over time, largely from gas contracts and services.

Troubling Pipeline Security Deals

However, beneath the strong headline numbers, analysts found features of the financial statements that raise questions about crude allocation and national fiscal priorities. Energy economist Kelvin Emmanuel drew attention to what he described as confirmation of long-rumored crude allocations tied to pipeline security arrangements.

“For months I have been saying that the government is giving crude oil daily to militants for pipeline protection. Now that the NNPC’s financial statement shows that N7.1 trillion was disbursed in 2024 from supposed subsidy savings for pipeline security contracts,” Emmanuel said.

“I am sure the 78k to 110k barrels p.d is now confirmed,” he added.

According to the financial statement, a portion of the crude volumes classified as “subsidy savings” was redirected as daily allocations across several channels. The breakdown includes 312,000 barrels per day tied to subsidy savings in the crude allocation framework. Out of this, 110,000 barrels were assigned to pipeline security contracts. Another 202,000 barrels went into what Emmanuel described as funding for parallel accounts not covered by approved budgets, such as the coastal road and Lagos airport rehabilitation fund.

While the company did not respond to these interpretations, analysts have pointed out that such commitments have practical consequences. One of the immediate effects, they say, is NNPCL’s inability to meet its crude supply obligations to the Dangote Refinery.

“But Dangote has to import 53% of the crude he uses daily from mostly America,” Emmanuel said.

He argued that the refinery has been navigating two major hurdles. “If it’s not the JV partners trying to strangle him with an additional $3 per barrel commission by routing feedstock through their third party trading houses (that do not pay tax to Nigerian government), and then claiming ‘willing buyer, willing seller’, it’s NNPC telling him that all their barrels are committed.”

This situation has intensified criticism of Nigeria’s crude allocation structure, particularly as the country battles foreign exchange shortages, fuel import dependence, and rising domestic energy costs. Analysts have noted that a national refinery of that scale relying on imported crude not only raises costs but also weakens the original policy objective behind its establishment — to reduce import dependence and conserve foreign exchange.

Despite the strong earnings, energy economists warn that the company’s financial position continues to mirror Nigeria’s broader oil sector struggles. The numbers capture what happens when production rises, trading improves, and buyers increase. They also expose how allocations, off-the-book commitments, and structurally embedded leakages drag the national oil company away from its core commercial obligations.

xAI’s Latest Funding Push Targets $15 Billion Raise at $230B Valuation

By
Paul Ugbede Godwin
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0

Elon Musk’s xAI is in advanced discussions to raise approximately $15 billion in equity funding at a $230 billion pre-money valuation, according to multiple reports from late November 2025.

This would more than double the company’s valuation from $113 billion, as disclosed during its all-stock merger with the social media platform X back in March 2025. The deal is expected to close by December 19, 2025, after an extension from an earlier deadline, giving investors more time to commit.

The round is primarily equity-based, with terms outlined to investors by Musk’s wealth manager, Jared Birchall. It’s positioned as xAI’s Series E, following prior raises including $6 billion in Series B (May 2024) and another $6 billion in Series C (December 2024), bringing total funding to over $37 billion if this closes.

At $230 billion pre-money, the post-money valuation would hit around $245 billion—still below rivals like OpenAI valued at ~$500 billion after a $40 billion raise earlier in 2025 but a massive leap for a two-year-old startup founded in July 2023.

Appetite remains high due to xAI’s aggressive scaling in AI infrastructure. NVIDIA’s CEO, Jensen Huang, recently expressed regret over not investing more, calling it a “great future company.”

Strategic backers like SpaceX which contributed $2 billion in a prior round and potential Tesla involvement approved by shareholders in November 2025 add to the momentum.

However, Musk publicly dismissed an earlier CNBC report on a $15 billion raise at $200 billion as “false,” though subsequent reporting aligned with the higher $230 billion figure without rebuttal.

xAI’s surge reflects the broader AI “arms race,” where investors prioritize compute power, talent, and speed over immediate revenue. The funds are earmarked for. Expanding the Colossus supercomputer in Memphis, Tennessee—a 1-million-square-foot data center already partially funded by a $10 billion equity/debt mix in June 2025.

Advancing Grok, xAI’s AI chatbot, including the recent launch of Grokipedia an AI-powered Wikipedia alternative aimed at reducing “propaganda”. Securing GPUs amid shortages, with xAI burning cash on training runs to catch up to OpenAI’s ChatGPT and Anthropic’s Claude.

The idea for Grokipedia emerged in September 2025 during a conversation at the All-In podcast conference between Musk and David Sacks, a White House advisor on AI and cryptocurrency.

Sacks criticized Wikipedia’s biases, calling it a “constant war” maintained by left-wing activists, and suggested publishing Grok’s knowledge base as “Grokipedia.” Musk quickly endorsed the concept, announcing on X that xAI was building it as a “massive improvement over Wikipedia.”

Musk calls for xAI engineers to join the project, emphasizing its open-source nature and unlimited public use. Musk announces version 0.1 beta in two weeks, highlighting Grok’s process of analyzing sources like Wikipedia for truthfulness and rewriting entries accordingly.

Musk envisions renaming it “Encyclopedia Galactica” once mature, with copies preserved on the Moon and Mars. Version ~0.2 released with proposed edits beta.

Musk has repeatedly claimed Grokipedia will surpass Wikipedia “by several orders of magnitude in breadth, depth, and accuracy,” with version 1.0 promising to be “10X better.”

Powered by Grok, which analyzes and rewrites sources for biases, falsehoods, and omissions. It uses real-time data from X (formerly Twitter) and web searches for dynamic updates.

However, it drew sharp criticism for promoting right-wing views, conspiracy theories, and Musk’s perspectives—e.g., linking pornography to worsening the AIDS epidemic or suggesting social media fuels transgender identities.

Entries on figures like Parag Agrawal (ex-Twitter CEO) amplify Musk’s criticisms absent from Wikipedia. xAI’s response to media inquiries was an automated “Legacy Media Lies” message.

Wikipedia’s foundation stated it doesn’t interfere with such experiments, noting AI reliance on human-curated data. Experts like Ryan McGrady warn it exemplifies “controlling knowledge” for power.

It’s a bold, polarizing entry in the “encyclopedia wars,” prioritizing AI speed over crowdsourced consensus—but its long-term impact hinges on balancing ambition with verifiable accuracy. Critics argue the valuation is “vibes-based” rather than fundamentals-driven—Musk’s track record fuels FOMO.

Still, with AI projected to require $1 trillion in compute by 2027, backers see xAI as a high-upside bet on rapid iteration. This raise cements xAI as one of the world’s most valuable private companies, intensifying competition.

X Users hail it as “the most Elon move ever,” emphasizing xAI’s “anti-corporate” speed, while skeptics question if it’s sustainable hype. If it closes, expect accelerated Grok updates and deeper ties to Musk’s ecosystem like Tesla robotics. For now, it’s a bold signal: In AI, ambition prices like reality.

Deutsche Bank’s Updates Gold and Silver Price Forecast for 2026

By
Paul Ugbede Godwin
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0

Deutsche Bank announced an upward revision to its gold price forecast for 2026, raising the average target to $4,450 per ounce from its previous estimate of $4,000 per ounce. This adjustment reflects the bank’s increasingly bullish outlook on the precious metal amid ongoing global economic uncertainties.

Projected Average Price: $4,450/oz. Trading Range for 2026: $3,950–$4,950/oz. The upper end of the range ($4,950/oz) represents approximately a 14% premium over the current December 2026 COMEX gold futures contract price.

This marks the second significant hike in recent months; in September 2025, Deutsche Bank had lifted its 2026 target to $4,000/oz from $3,700/oz, driven by similar factors.

Deutsche Bank cited several supportive dynamics for gold’s continued strength. Improving sentiment among Western investors, including inflows into gold-backed ETFs after a period of outflows.

Ongoing purchases by central banks like those from emerging markets like China and India as a hedge against geopolitical risks and currency devaluation. Gold’s outperformance relative to the U.S. dollar, combined with its widest trading range since 1980 in 2025, signals a constructive environment heading into next year.

The bank also noted limited supply responses from miners, which could further tighten the market. While optimistic, Deutsche Bank tempered its view with key downside risks. Gold’s positive correlation with risk assets like equities, which could lead to volatility if stock markets falter.

Less aggressive U.S. Federal Reserve rate cuts in 2026 than currently anticipated by markets. A potential slowdown in central bank buying if reserve managers become more selective. Gold prices have surged over 30% year-to-date in 2025, hitting multiple record highs amid inflation concerns, U.S. election uncertainties, and global tensions.

This forecast aligns with a chorus of bullish analyst views, though it remains aggressive compared to consensus estimates (e.g., many peers target around $3,000–$3,500/oz for 2026). Spot gold is trading near $2,800/oz, implying substantial upside potential if Deutsche Bank’s scenario materializes.

Investors may interpret this as a signal to maintain or increase exposure to gold via ETFs like GLD or physical holdings. Silver prices have rallied over 70% year-to-date, trading near $48.50 per ounce—a record high driven by persistent supply deficits, surging industrial use in solar panels, EVs, and electronics, and its role as a safe-haven asset alongside gold.

Analysts across major banks and research firms have broadly upgraded their 2026 forecasts in recent months, reflecting expectations of continued global economic resilience, potential Fed rate pauses or cuts, and central bank diversification.

While views vary from conservative to highly optimistic, the consensus points to an average price range of $45–$60 per ounce, implying 10–25% upside from current levels. This aligns with the recent bullish momentum in precious metals, including Deutsche Bank’s hike of its gold target to $4,450/oz for 2026.

For silver, Deutsche Bank maintains a more measured outlook at $45/oz average up from $40 earlier this year, citing a fifth consecutive year of physical market deficits but tempered by potential industrial demand normalization. More aggressive forecasts, like Bank of America’s $65 peak average $56.25, highlight structural shortages and ETF inflows.

Outliers include BNP Paribas and Solomon Global at $100 year-end doubling from current, fueled by gold’s spillover and green energy boom, though these are seen as high-end scenarios.

Robert Kiyosaki predicts $75, while First Majestic Silver’s CEO eyes $100+ based on historical patterns. The silver market faces its fifth straight year of shortfalls, with mine production lagging ~200 million ounces behind demand. Recycling is below expectations, tightening physical availability.

Industrial Demand: ~50% of silver use is industrial; solar alone could consume 230+ million ounces annually by 2026, plus EVs and AI data centers. ETF inflows are rebounding, and central banks (e.g., China) are adding to reserves. A weaker USD and Fed easing enhance appeal.

Gold-Silver Ratio: Currently ~82:1 historically high, suggesting silver has catch-up potential if gold hits $4,000+. Despite the optimism, analysts flag volatility—silver moves 1.7x faster than gold. Slower-than-expected Fed cuts or a stronger USD pressuring prices.

Geopolitical de-escalation easing safe-haven buying. World Bank predicts new highs in 2026 but a rally peak and reversal in 2027 due to tariffs and inflation normalization. Silver’s 2025 surge to $51.70 peak has outpaced gold’s, with futures for December 2026 at ~$50 implying room for upside.

Investors may consider ETFs, miners, or physical bars/coins, but volatility warrants diversification. If industrial trends hold, silver could outperform gold in 2026, as Macquarie notes.

Unit Adds Spot Ethena to Hyperliquid, as MegaETH Experiences Issues with Pre-Deposit USDM Bridge

By
Paul Ugbede Godwin
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1

Unit, the decentralized asset tokenization protocol powering Hyperliquid’s spot markets, announced the launch of spot deposits, withdrawals, and trading for Ethena’s governance token, ENA, on Hyperliquid.

This integration allows users to seamlessly bridge ENA into Hyperliquid’s ecosystem via Unit’s lock-and-mint mechanism, enabling native spot trading paired with USDC (ticker: ENA/USDC).

It’s a significant step in deepening Ethena’s presence on Hyperliquid, building on prior collaborations like USDe integrations and partnerships with projects such as Based and Nunchi.

This move enhances ENA’s liquidity and utility within Hyperliquid’s high-performance environment, which includes HyperCore (perpetual DEX) and HyperEVM (EVM-compatible layer).

Users can now deposit ENA directly through Unit’s app for one-click transfers, avoiding traditional bridges or CEXs, and leverage it for margin trading, DeFi protocols like borrowing USDe on Euler or Felix, or structured products like delta-neutral stables.

Deposits are facilitated via Unit’s integration with LayerZero’s OFT Standard and StargateFinance, enabling instant ERC-20 transfers into Hyperliquid. Once deposited, ENA becomes tradable on the spot orderbook at app.hyperliquid.xyz/trade/ENA/USDC. Withdrawals reverse the process securely using Unit’s MPC/TSS architecture.

Live as of November 25, 2025. This follows Ethena’s Q4 2024 support for Hyperliquid, including the first HyperCore USD spot asset (hUSDe) offering ~10% APY rewards.

Boosts on-chain liquidity and positions ENA as a “core asset” across execution layers. Recent ecosystem pushes (e.g., Nunchi partnership for nHYPE staking on November 21) have already sparked ENA price rebounds toward $0.247, with analysts noting TD Sequential buy signals and record 73k daily transfers.

For Hyperliquid: Unit has driven $2.95B in spot volume since February 2025 35% of March’s spot trading, with this adding to integrations like uBTC/uETH/uSOL. Hyperliquid’s TVL hit $840M ATH, up 143% monthly, fueled by HIP-3 growth mode.

Aligns with Ethena’s treasury accumulation of ENA $530M raised recently and plans for hUSDe— Hyperliquid-native synthetic dollar collateralized by Unit spots. It also supports HIP-3 deployments using USDe as a quote asset, potentially unlocking yields and airdrops.

Traders and builders emphasized improved mobility for LPs and market makers, reducing reliance on CEXs. No major price volatility reported yet, but sentiment is bullish amid ENA’s oversold recovery.

This integration underscores Ethena’s strategy of quiet, infrastructure-focused expansion, potentially accelerating adoption in Hyperliquid’s $840M TVL ecosystem.

Unlike USDC or USDT which are backed 1:1 by fiat or fiat-equivalent reserves, and unlike DAI or crvUSD which are over-collateralized with crypto, USDe is a delta-neutral synthetic dollar that maintains its $1 peg through a combination of:Cash-and-carry basis trade short perps + long spot/crypto collateral.

Ethena opens a short perpetual position of equal dollar value on centralized and decentralized exchanges (BitMEX, Binance, Bybit, Hyperliquid, Aevo, Pendle, etc.). The collateral sits in custody (Ceffu, Copper, Fireblocks, Cobo) or on-chain and continues earning staking yield.

USDe is created and is fully backed 1:1, but the backing portfolio has virtually zero price risk. When funding rates are positive most of the time in bull markets, shorts get paid ? this income + staking yield is distributed to sUSDe holders.

Staked USDe — the yield-bearing version. You lock USDe to get sUSDe and earn the protocol yield. Hyperliquid-native version of USDe (Unit-wrapped spot asset on Hyperliquid). The yield is highly variable and depends almost entirely on perpetual funding rates.

Ethena has never had to pay negative funding because it dynamically reduces hedge ratios or switches venues when funding turns negative. TVL in backing assets + hedges: >$6 billion. Supported collateral: BTC, ETH, stETH, mETH, cbBTC, tBTC, SOL, USDC, USDT.

If funding goes heavily negative for prolonged period ? yield can go to 0 or negative. Reserve Fund (grows to hundreds of millions), dynamic hedging, insurance fund. Multiple custodians, on-chain proof-of-reserves, MPC wallets. Synthetic dollars could attract scrutiny. Fully on-chain mint/redeem, KYC-free, censorship-resistant design.

It behaves like a crypto-native U.S. Treasury bill. In short: USDe is the first stablecoin that is both capital-efficient and natively yield-bearing at scale, achieved through delta-neutral perpetual short hedging + staked collateral.

MegaETH Experiences Issues with the Pre-Deposit USDM Bridge

MegaETH, an Ethereum Layer 2 network focused on real-time performance, launched a pre-deposit bridge for its USDm stablecoin built in collaboration with Ethena.

The bridge allowed KYC-verified users via Sonar to deposit USDC from Ethereum mainnet in exchange for a 1:1 allocation of USDm upon MegaETH’s Frontier mainnet launch in December.

The initial cap was set at $250 million, with no per-wallet limits, aiming to bootstrap liquidity and reward early participants through points in an upcoming rewards campaign. However, the event quickly unraveled into a series of technical and operational mishaps, leading to outages, unintended deposit surges, and community backlash.

By midday, MegaETH abandoned plans to expand the cap to $1 billion, finalized at $500 million, and enabled withdrawals for dissatisfied users. No funds were lost, and contracts remain secure per audits from Zellic and Slowmist, but the chaos highlighted operational risks ahead of mainnet.

The issues stemmed from a combination of third-party dependencies, configuration errors, and rapid user traffic. The third-party bridge provider used for USDC transfers went offline almost immediately at launch (9:00 AM ET), blocking access for ~1 hour.

Sonar KYC system had a “mismatch in SaleUUID” between the deposit contract and verifier, plus misconfigured rate limits set too low, causing a traffic jam and DDoS-like failures. Over 800 transactions failed with “InvalidSaleUUID” errors.

Delayed start; users spamming refreshes filled the $250M cap in just 156 seconds once resolved, excluding many eligible participants. To raise the cap to $1B, the team queued a transaction in their Safe multisig wallet with a 4-of-4 signature threshold intended as 3-of-4.

This made it executable by anyone, leading to premature execution ~34 minutes early by an unknown party suspected “chud.eth”. A follow-up attempt to cap at $400M failed as deposits already exceeded it. Uncontrolled reopening caused a surge past interim limits; early depositors revolted over yield dilution 4x without warning or opt-outs.

Team clarified “first wave unaffected” via multipliers but faced rug-pull accusations. Initial $250M cap filled instantly ? announced $1B raise ? multisig error ? tried $400M reset ? settled on $500M ? abandoned expansion due to “unresolved KYC bugs.” Withdrawals enabled for opt-outs, but uptake <5%.

Confusion eroded trust; #MegaETH trended with 50K+ mentions on X, mixing frustration and memes about “Ethereum great again.” Bridge launches; outages hit within minutes. Team tweets about third-party API issues.

~10:00 AM ET: Service resumes; $250M cap fills in <3 minutes. 10:15 AM ET: Announce $1B cap raise for broader access; bridge reopen at 11:00 AM. ~10:46 AM ET: Multisig tx executes early; deposits surge again. ~11:00 AM ET: Attempt $400M cap (fails); reset to $500M. Noon ET: Halt $1B plan; enable withdrawals; promise full retro and fixes.

Users reported instant DDoS effects, failed txs, and one whale pre-approving $23M USDC amid chaos. Posts mocked the “reminding us why we need Ethereum great again” vibe, with speculation on premarket shorts for refunds. Transparent team updates and no exploits.

The Block and Bankless called it “turbulence” and “chaos,” praising transparency but critiquing “basic errors” for a “technically-advanced project.” Crypto has a short memory—expect quick recovery if mainnet delivers.

Some tied it to unverified whale activity or quota manipulations, but official channels denied expansions beyond announcements. ~$500M in USDC is locked in audited contracts, with USDm distributions pending mainnet. Withdrawals are available for those unsettled, and users retain rewards eligibility.

MegaETH plans a detailed post-mortem to prevent recurrences, focusing on KYC robustness and multisig processes. The team emphasized: “All contracts remain secure despite the operational missteps.”

For non-participants, this pre-loads strong day-1 liquidity for USDm, potentially tightening spreads on launch. Overall, a bumpy but educational rollout—typical crypto turbulence before liftoff.

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