MegaETH, a prominent Layer 2 solution, is under scrutiny for its centralized architecture, which poses significant risks to users. Crypto analyst Justin Bons highlights that MegaETH operates on a single server, allowing it to censor, front-run, or even misappropriate user funds. Bons criticizes the system for returning less than 0.2% of fees to Ethereum, describing it as "exceptionally parasitic." Bons warns that MegaETH's reliance on a single permissioned sequencer and a 4-of-8 multisignature smart contract exposes users to critical security risks. Despite its efficient scaling, MegaETH's centralization undermines its decentralization claims, with high operational costs and limited economic contribution to Ethereum. Bons acknowledges MegaETH's engineering achievements but emphasizes the need for true decentralization.