Could MYX Finance’s (MYX) Surge Signal a Pump-and-Dump Scheme?

MYX Finance (MYX) skyrocketed to a fresh all-time high (ATH) in early Asian trading hours, emerging as the day’s top gainer.

The surge, fueled by a triple-digit rally, has split market sentiment. Some analysts report no unusual whale activity, while others caution that the rapid gains could signal potential manipulation.

Why Is MYX Finance’s (MYX) Price Surging? 

MYX is the native utility token of MYX Finance. It is a non-custodial decentralized exchange (DEX) that facilitates on-chain trading of perpetual contracts. 

BeInCrypto Markets data showed that the altcoin has recorded a 167% surge in the past 24 hours. Earlier today, the price reached $3.78, representing a new record high for MYX. At press time, it traded at $3.56.

“MYX did a 200% massive moon shot from the bottom!” a crypto analyst wrote.

The market cap also doubled, reaching over $450 million. Furthermore, CoinGecko data showed that the trading volume pumped 1,318% to reach $313 million. Cryptocurrency exchange Bitget accounted for 66% of the trading activity.

However, the rapid ascent has not been without controversy. Some analysts argue that this rally is still the result of manipulation, an allegation MYX has also faced in the past. In August, BeInCrypto reported that the altcoin’s 1,957% appreciation attracted substantial criticism, some even calling it a trap.

The coin did shed some gains after the explosive August rally and regained momentum again in September, as evidenced by the latest peak. Still, analysts remain unconvinced that MYX’s growth is organic. 

Analyst Dominic highlighted several red flags surrounding the token in a detailed post on X (formerly Twitter). He pointed to a sharp rise in daily perpetual trading volumes. This, he argued, appeared inconsistent with the project’s size and liquidity. 

“Over $10 million in short positions liquidated in one day, and Whales deliberately pushed the price up to trigger liquidations. This creates artificial demand that disappears once shorts are gone or once they are done dumping 1.5% of the supply schedule for unlock today,” Dominic posted.

Moreover, he noted that nearly 39 million tokens were unlocked as the price spiked, with the timing suspiciously coinciding with the surge. 

“On-chain data shows multiple small buys funneled into a central wallet and Identical patterns across PancakeSwap, Bitget, and Binance, which suggests just one thing: a controlled pump designed to trap retail,” he added.

In addition, Dominic emphasized the role of thin liquidity in amplifying price swings and suggested that technical indicators may have encouraged traders to enter positions during the rally. Based on these observations, he characterized the event as showing features commonly associated with market manipulation.

“This is a textbook pump-and-dump setup. Retail traders are the exit liquidity. The insiders have already taken profit. Last time there was an unlock at the time, those tokens shifted in theoretical value from $3.9 million to around $59.4 million as market prices surged due to the scam pump before plummeting 60%  a week later,” Dominic concluded.

Despite these concerns, CoinWings reported that the MYX showed limited activity, with no large-scale sell-offs by whales. This indicates they may not intend to suppress the price soon, lessening sell-off concerns. 

Thus, the current data present a complex picture. While the trading volume and price surge suggest strong market interest, analysts also raise valid points about manipulation.

The crypto community awaits further developments to determine whether this rally marks a sustainable breakthrough or a prelude to a correction. Until then, the debate over its legitimacy persists.