{"investigation":{"slug":"pyth-network","entity_name":"Pyth Network","trust_score":68,"severity_base":null,"score_modifier":0,"confidence":0.6,"status":"published","content_type":"investigation","summary":"Pyth Network is a decentralized, first-party financial oracle that aggregates price data from exchanges, market makers, and trading firms and distributes it to smart contracts across dozens of blockchains. It is a prominent, well-capitalized project that has secured a notable partnership with the U.S. Department of Commerce to publish economic data on-chain, but its native PYTH token has drawn sustained community criticism over large scheduled token unlocks and inflationary supply, and the brand has been targeted by unaffiliated phishing sites.","sections":[{"content":"Pyth Network is a first-party oracle protocol, meaning price data is submitted directly by institutional sources — exchanges, market makers, and trading firms such as Binance, OKX, Jane Street, Bybit, and Cboe Global Markets — rather than scraped from third parties. Publishers submit prices to an aggregation program running on a dedicated network called Pythnet, which computes an aggregate price with a confidence interval and relays it to other blockchains via cross-chain messaging (including Wormhole). The network launched on Solana in 2021. It was founded by Mike Cahill, Jayant Krishnamurthy, and Ciarán Cronin, who at the time worked at trading firm Jump Crypto. In 2023 the three founders, along with several other former Jump Crypto staff, spun out into a new company, Douro Labs, to serve as a core contributor to Pyth Network; Jump Crypto has continued to act as a data publisher to the network. Governance of the protocol is associated with the Pyth Data Association.","heading":"Background and Structure","sources":[{"url":"https://pyth.network/blog/welcoming-douro-labs-to-the-pyth-network","name":"Pyth Network — Welcoming Douro Labs to the Pyth Network","type":"official","credibility":1},{"url":"https://news.bloomberglaw.com/crypto/jumps-crypto-specialists-depart-for-blockchain-focused-startup","name":"Bloomberg Law — Jump's Crypto Specialists Depart for Blockchain-Focused Startup","type":"news_article","credibility":1},{"url":"https://coinmarketcap.com/assets/pyth-network","name":"CoinMarketCap — What is Pyth Network (PYTH)?","type":"research","credibility":2}],"severity":"low"},{"content":"The native PYTH token was introduced via a 'retrospective airdrop' first announced on November 1, 2023, targeting wallets and applications that had historically used Pyth price data. Claims opened on November 20, 2023, coinciding with the token's public debut; CoinDesk reported the token traded near a $500 million implied valuation on launch day, with developers describing it as the start of a permissionless mainnet. The Block reported that more than 90,000 wallets across 27 blockchains and over 200 applications were eligible across the airdrop's phases, with a second phase for decentralized applications following in February 2024. The eligibility snapshot for the first phase was taken on September 1, 2023, and was later revised upward.","heading":"PYTH Token Launch and Airdrop","sources":[{"url":"https://www.theblock.co/news/defi/2023-11-01-pyth-network-token-airdrop-260421","name":"The Block — Pyth Network unveils retrospective token airdrop for over 75,000 eligible wallets","type":"news_article","credibility":2},{"url":"https://coindesk-coindesk-prod.cdn.arcpublishing.com/business/2023/11/20/pyth-token-debuts-near-500m-valuation-as-90000-wallets-receive-airdrop/","name":"CoinDesk — Pyth Token Debuts Near $500M Valuation as 90,000 Wallets Receive Airdrop","type":"news_article","credibility":2},{"url":"https://pyth.network/blog/pyth-network-retrospective-airdrop","name":"Pyth Network — Pyth Retrospective Airdrop: Phase 1","type":"official","credibility":1}],"severity":"low"},{"content":"PYTH's token supply schedule has been a recurring source of community criticism. A large unlock in May 2024 was followed by a sharp intraday price drop before the token recovered. Coverage of a subsequent unlock in May 2025 reported that approximately 2.13 billion PYTH tokens — described by FXStreet as roughly 58.7% of the token's circulating market capitalization at the time — were scheduled for release, raising concerns about sell-side pressure if recipients liquidated their allocations. On Pyth's own community forum, members posted critical threads including one titled 'No Demand, Excessive Supply: A Critical Call for Strategic Burn Before the 43% Inflation Hit' and another requesting a six-month delay to a scheduled May 2026 unlock to allow further tokenomics review. These are community governance disputes rather than allegations of fraud, but they reflect ongoing concern among token holders about dilution and inflation.","heading":"Token Unlock Criticism and Tokenomics Concerns","sources":[{"url":"https://www.fxstreet.com/cryptocurrencies/news/pyth-network-could-extend-losses-targeting-01-ahead-of-mega-298-million-token-unlock-202505191701","name":"FXStreet — Pyth Network could extend losses targeting $0.1 ahead of mega $298 million token unlock","type":"news_article","credibility":2},{"url":"https://invezz.com/news/2024/05/20/pyth-network-pyth-bulls-take-charge-post-price-feed-release-and-token-unlock/","name":"Invezz — Pyth Network: PYTH bulls take charge post price feed release and token unlock","type":"news_article","credibility":2},{"url":"https://forum.pyth.network/t/no-demand-excessive-supply-a-critical-call-for-strategic-burn-before-the-43-inflation-hit/2334","name":"Pyth community forum — No Demand, Excessive Supply: A Critical Call for Strategic Burn Before the 43% Inflation Hit","type":"community_report","credibility":3},{"url":"https://forum.pyth.network/t/delay-may-2026-token-unlock-by-6-months-to-allow-comprehensive-tokenomics-review/2395","name":"Pyth community forum — Delay May 2026 Token Unlock by 6 Months to Allow Comprehensive Tokenomics Review","type":"community_report","credibility":3}],"severity":"medium"},{"content":"Reports from the network's early period describe an incident in which two data publishers posted near-zero prices for an asset due to errors in handling decimal values; because Pyth's aggregation logic weighted these submissions, it produced a distorted aggregate price for a period. This was characterized in coverage as a data-handling bug among publishers rather than a theft, hack, or manipulation of the oracle's core logic. Separately, a service outage affecting Pythnet and its Hermes relayer was reported to have frozen price feed updates for several hours, which is described as an availability failure rather than a security breach. AVOID.NET could not find a Tier 1 source with full technical detail on either incident; readers should treat the specifics as low-to-medium confidence pending primary documentation.","heading":"Early Price Feed Incident","sources":[{"url":"https://www.pyth.network/blog/pyth-liquidity-oracles-v1","name":"Pyth Network — Pyth Liquidity Oracle v1.0","type":"official","credibility":1},{"url":"https://www.certik.com/blog/oracle-wars-the-rise-of-price-manipulation-attacks","name":"CertiK — Oracle Wars: The Rise of Price Manipulation Attacks","type":"research","credibility":2}],"severity":"medium"},{"content":"In October 2022, the Solana-based lending platform Mango Markets suffered an approximately $100 million exploit in which an attacker used MNGO tokens as collateral after inflating their market price, then borrowed heavily against that inflated collateral value. Pyth was the price oracle used by Mango Markets at the time. Reporting on the incident indicates the oracle reflected the actual (manipulated) market price rather than being directly compromised or corrupted — the attack worked by moving the real market price of a thinly-traded token, a known class of risk for any oracle sourcing from spot markets rather than evidence that Pyth's aggregation mechanism itself was breached. Pyth has since launched a 'Liquidity Oracle' product, built with data firm Kaiko, aimed at helping protocols limit exposure to this type of thin-market risk.","heading":"Mango Markets Exploit — Oracle Role","sources":[{"url":"https://forklog.com/en/news/hacker-drains-1-1-million-from-levana-protocol-liquidity-pools","name":"ForkLog — Hacker drains $1.1 million from Levana protocol liquidity pools","type":"news_article","credibility":2},{"url":"https://www.pyth.network/blog/pyth-liquidity-oracles-v1","name":"Pyth Network — Pyth Liquidity Oracle v1.0","type":"official","credibility":1}],"severity":"medium"},{"content":"Pyth Network's brand has reportedly been used by unaffiliated phishing operations. On December 24, 2025, a user on Pyth's official community forum reported that a sponsored Google search result for the 'Pyth Forum' led to a page (via a redirect chain through a domain styled 'farmcapital.run' to 'phyt.run') that mimicked an authentic Pyth site, where every link or control prompted a wallet-connection request — a hallmark of wallet-draining phishing scams. A Pyth community moderator responded the following day, saying the team would work with partners to get the site taken down, and noted the site could not be found on the first page of search results at that time. The forum thread does not record a confirmed takedown. This episode represents a scam targeting Pyth's users and brand, not an action by, or vulnerability in, the Pyth protocol itself.","heading":"Phishing Sites Using the Pyth Brand","sources":[{"url":"https://forum.pyth.network/t/bad-actors-and-pyth-network/2311","name":"Pyth community forum — Bad Actors and Pyth Network","type":"community_report","credibility":3}],"severity":"medium"},{"content":"In August 2025, the U.S. Department of Commerce selected Pyth Network, alongside Chainlink, to help publish official economic data on public blockchains. The Department's Bureau of Economic Analysis published a cryptographic hash (and in some cases the topline figure) of its Q2 2025 GDP data release to nine blockchains, including Bitcoin, Ethereum, Solana, and others, using Coinbase, Gemini, and Kraken to pay for the on-chain transactions. Pyth's blog described the move as following months of engagement with the Department of Commerce under Secretary Howard Lutnick. Coverage differs on the precise division of responsibilities between Pyth and Chainlink in this initiative. Following the announcement, the PYTH token price rose sharply, reported by one outlet as a 94% gain to a five-month high. This is a notable reputational and commercial development, not a risk indicator.","heading":"U.S. Department of Commerce Partnership","sources":[{"url":"https://www.pyth.network/blog/pyth-network-selected-by-u-s-department-of-commerce-to-verify-and-distribute-economic-data-onchain","name":"Pyth Network — The U.S. Department of Commerce is Working with Pyth Network to Verify & Distribute Economic Data Onchain","type":"official","credibility":1},{"url":"https://cointelegraph.com/news/pyth-network-token-surges-us-commerce-onchain-data","name":"Cointelegraph — Pyth Network token surges on US Commerce onchain data news","type":"news_article","credibility":2},{"url":"https://blockworks.com/news/chainlink-labs-commerce","name":"Blockworks — Chainlink integrates U.S. Commerce Department macroeconomic data","type":"news_article","credibility":2},{"url":"https://www.globalgovernmentforum.com/us-department-of-commerce-starts-posting-gdp-data-on-public-blockchains/","name":"Global Government Forum — US Department of Commerce starts posting GDP data on public blockchains","type":"news_article","credibility":2}],"severity":"low"},{"content":"AVOID.NET found no evidence in available sources of an SEC, CFTC, or other regulatory enforcement action, lawsuit, or formal investigation targeting Pyth Network or its token. One Canadian brokerage's help documentation indicates it reviewed whether PYTH could be classified as a security or derivative before listing it, which is a standard platform-listing compliance review rather than a government action. This section should not be read as a clearance of regulatory risk — only as an absence of findings in the sources reviewed.","heading":"Regulatory Status","sources":[{"url":"https://help.wealthsimple.com/hc/en-ca/articles/35264251855387","name":"Wealthsimple Help — What is Pyth Network?","type":"other","credibility":2}],"severity":"low"}],"timeline":[{"date":"2021","event":"Pyth Network founded by Mike Cahill, Jayant Krishnamurthy, and Ciarán Cronin and launched on Solana as a first-party price oracle.","source":"Pyth Network blog","source_url":"https://pyth.network/blog/welcoming-douro-labs-to-the-pyth-network"},{"date":"2022-10","event":"Mango Markets, which used Pyth as its price oracle, suffered an approximately $100 million exploit after an attacker inflated the market price of MNGO tokens used as collateral.","source":"ForkLog","source_url":"https://forklog.com/en/news/hacker-drains-1-1-million-from-levana-protocol-liquidity-pools"},{"date":"2023-08-31","event":"Reports surfaced that Jump Crypto's crypto specialists were departing to launch a new blockchain-focused startup (later named Douro Labs) to work on Pyth Network.","source":"Bloomberg Law","source_url":"https://news.bloomberglaw.com/crypto/jumps-crypto-specialists-depart-for-blockchain-focused-startup","date_evidence":"Aug 31, 2023"},{"date":"2023-09-01","event":"Eligibility snapshot taken for the first phase of the PYTH retrospective airdrop.","source":"Pyth Network blog / The Block","source_url":"https://pyth.network/blog/pyth-network-retrospective-airdrop-eligibility-and-distribution-specifications","date_evidence":"The DeFi-participant snapshot was taken on September 1, 2023"},{"date":"2023-11-01","event":"Pyth Network announces its retrospective token airdrop for the PYTH token.","source":"The Block","source_url":"https://www.theblock.co/news/defi/2023-11-01-pyth-network-token-airdrop-260421","date_evidence":"The Pyth Network Retrospective Airdrop was announced on November 1, 2023"},{"date":"2023-11-20","event":"PYTH token claims open and the token debuts publicly, trading near an implied $500 million valuation.","source":"CoinDesk","source_url":"https://coindesk-coindesk-prod.cdn.arcpublishing.com/business/2023/11/20/pyth-token-debuts-near-500m-valuation-as-90000-wallets-receive-airdrop/","date_evidence":"CoinDesk's coverage is dated November 20, 2023"},{"date":"2024-02-07","event":"Second phase of the PYTH retrospective airdrop launches, covering decentralized applications that used Pyth data.","source":"Pyth Network blog","source_url":"https://www.pyth.network/blog/pyth-network-retrospective-airdrop-second-phase","date_evidence":"launched on February 7, 2024, per Pyth's blog"},{"date":"2024-05","event":"A large scheduled PYTH token unlock is followed by a sharp intraday price drop before the token recovers.","source":"Invezz","source_url":"https://invezz.com/news/2024/05/20/pyth-network-pyth-bulls-take-charge-post-price-feed-release-and-token-unlock/"},{"date":"2025-05","event":"A roughly 2.13 billion PYTH token unlock, reported as representing a majority of circulating market cap at the time, prompts price-decline warnings and community criticism over tokenomics.","source":"FXStreet","source_url":"https://www.fxstreet.com/cryptocurrencies/news/pyth-network-could-extend-losses-targeting-01-ahead-of-mega-298-million-token-unlock-202505191701"},{"date":"2025-08-28","event":"The U.S. Department of Commerce announces it is working with Pyth Network and Chainlink to publish Bureau of Economic Analysis GDP data on-chain; PYTH price surges on the news.","source":"Pyth Network blog / Cointelegraph","source_url":"https://www.pyth.network/blog/pyth-network-selected-by-u-s-department-of-commerce-to-verify-and-distribute-economic-data-onchain","date_evidence":"The announcement was made on August 28, 2025"},{"date":"2025-12-24","event":"A community member reports a phishing site impersonating the Pyth forum/website on the official Pyth community forum.","source":"Pyth community forum","source_url":"https://forum.pyth.network/t/bad-actors-and-pyth-network/2311","date_evidence":"On December 24, 2025, user Dbxcel reported a sponsored Google result"},{"date":"2026-05","event":"Community forum members request a six-month delay to a scheduled token unlock to allow for a comprehensive tokenomics review.","source":"Pyth community forum","source_url":"https://forum.pyth.network/t/delay-may-2026-token-unlock-by-6-months-to-allow-comprehensive-tokenomics-review/2395"}],"sources_used":[{"url":"https://pyth.network/blog/welcoming-douro-labs-to-the-pyth-network","name":"Pyth Network — Welcoming Douro Labs to the Pyth 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Airdrop","type":"news_article","archive_url":null,"credibility":2,"archive_error":"error:not-found","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://pyth.network/blog/pyth-network-retrospective-airdrop","name":"Pyth Network — Pyth Retrospective Airdrop: Phase 1","type":"official","archive_url":"http://web.archive.org/web/20260520163942/https://www.pyth.network/blog/pyth-network-retrospective-airdrop","credibility":1,"archive_timestamp":"2026-05-20T16:39:42+00:00"},{"url":"https://www.pyth.network/blog/pyth-network-retrospective-airdrop-second-phase","name":"Pyth Network — Pyth Retrospective Airdrop: Phase 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