FUNToken, a relatively obscure cryptocurrency launched during the 2017 bull market, plunged more than 90% on Uniswap early Friday after the hacker linked to Binance’s security breach began unloading a large supply into a shallow market.
The token, formerly known as FunFair, fell from approximately 0.0000037 wrapped ether (WETH) to 0.00000017 WETH in the affected Uniswap pool, according to GeckoTerminal. Across all trading venues, FUN declined 68% over the previous 24 hours, CoinGecko data shows.
The sharp move highlights the vulnerability of smaller cryptocurrencies when large holders attempt to sell more tokens than available market liquidity can absorb. Uniswap relies on pools of paired assets rather than conventional order books, meaning substantial trades can quickly distort prices in pools with limited funds.
FUN was introduced during the 2017 crypto boom. Its developer, FunFair Technologies, raised $26 million through a four-hour token sale in July that year to develop blockchain-based casino games. The project now operates as FUNToken.
The latest selloff was linked to the attacker responsible for the Binance security incident, which involved more than $6 billion in assets taken from the exchange’s hot wallets. These internet-connected wallets are used to process withdrawals. The incident is considered the largest cryptocurrency theft on record.
Arkham Intelligence identified USDT, USDC, Bitcoin, Ether, TRON and Solana among the stolen assets. The haul also included smaller tokens such as FUN, PROM, RSR, RED, OGN and GTC, according to Joshua Frank, co-founder and CEO of The Tie.
Tether and Circle moved to freeze stolen tokens under their control, followed by several other issuers. FUNToken separately asked centralized exchanges to temporarily suspend FUN deposits as a precaution. However, decentralized platforms such as Uniswap remained accessible, allowing the attacker to continue selling.
Hacker Moves 714.9 Million FUN to a Fresh Wallet
At 23:28 UTC on Thursday, a wallet identified by Etherscan as “Binance Hot Wallet Exploiter 2” transferred 714.9 million FUN to a newly created address, 0x06ea…685f.
The recipient started selling the tokens through Uniswap’s FUN/WETH pool three minutes later. It carried out more than 150 transactions over the following hours, with all but one routed through Uniswap v2. The remaining sale took place on PancakeSwap.
The final transaction was recorded at 04:17 UTC on Friday. Etherscan data shows that the wallet sold 134.1 million FUN for 111.5 ETH, worth approximately $250,000.
Frank had previously estimated the stolen FUN holdings at $6.23 million. Based on that valuation, the tokens sold were worth roughly $1.17 million, meaning the attacker realized only about 21% of their estimated value.
Thin Liquidity Exposes FUN to Heavy Selling
The Uniswap pool’s limited size amplified the price decline. It held approximately $16,000 in total liquidity at the time of reporting, split between FUN and WETH.
Uniswap pools automatically adjust token prices as their asset balances change. When a trader sells FUN, the pool receives more FUN and releases WETH. In a shallow pool, a large sale can substantially shift the balance, causing the token’s price to fall sharply.
Frank had highlighted this risk before the selloff by comparing the value of the hacker’s holdings with each token’s daily trading volume. FUN ranked highest, with the stolen supply valued at $6.23 million, equivalent to 252% of its reported daily volume. PROM also appeared near the top of his assessment.
“The hacker holds more than an entire day’s reported trading volume in FUN and PROM,” Frank wrote on X.
He cautioned that trading volume is only an approximate measure of how much selling a market can absorb.
FUN Rebounds, but 580.8 Million Tokens Remain in Hacker’s Wallet
FUN’s price began recovering after the selling activity stopped. The token’s price in the Uniswap pool climbed 75% over the following hour as buyers returned.
However, the attacker still holds approximately 580.8 million FUN, representing around 5.4% of the token’s maximum supply, according to Etherscan. Another round of selling could put the market under renewed pressure.
Other smaller assets linked to the attacker also declined. Reserve Rights (RSR) fell 17.6% over 24 hours, while RedStone (RED) dropped 17.1% and Gitcoin (GTC) lost 16.6%.
Origin Protocol (OGN), yearn.finance (YFI) and 1inch (1INCH) recorded declines between 9% and 13.6%. Bitcoin and Ether fell by comparison, losing 1.8% and 2.9%, respectively, according to CoinGecko.
Etherscan shows the attacker’s main wallet, 0x5227…2f8c, sold these tokens through dozens of transactions on Uniswap and PancakeSwap.
Frank identified FUN, PROM, RSR, RED, OGN, SOPH, ERA and GTC as assets worth monitoring. He said the key questions are how much of the stolen supply remains transferable, how quickly the attacker can sell it and whether individual token markets have enough liquidity to absorb further sales.
