A little-known token from 2017 crashed more than 90% on Uniswap after the Binance hacker sold it into a very small pool. The attacker also sold several other smaller tokens, and the selling wallet still holds 580.8 million FUN.
FUNToken (FUN), formerly known as FunFair, plunged more than 90% on the Uniswap pool where the Binance hacker was selling, after the attacker dumped it into a market too "thin" to absorb the selling. It fell from about 0.0000037 wrapped ether (WETH) to 0.00000017 WETH. Across all markets, FUN is down 68% in 24 hours, according to CoinGecko data.
The attacker took more than $6 billion from the exchange's hot wallets, which makes it the largest crypto hack on record. Tether and Circle moved to freeze the stolen tokens they control, and several other issuers followed. Yet trading on decentralized exchanges such as Uniswap cannot be halted, and the hacker used that opening.
Hacker sells FUN into a tiny pool
At 23:28 UTC on Thursday, a wallet that Etherscan labels "Binance Hot Wallet Exploiter 2" sent 714.9 million FUN to a fresh address. Three minutes later, that address began selling into the FUN/WETH pool on Uniswap. In all, the wallet sold 134.1 million FUN for 111.5 ETH, about $250,000, according to Etherscan data.
The pool holds about $16,000 total, split evenly between FUN and WETH, so even modest sales can tank prices sharply. A liquidity pool works like a shared pot holding two tokens, and the smaller the pot, the more each sale drags the price down.
Other small tokens slide, and risk remains
Some experts had flagged the risk. According to The Tie's Joshua Frank: "The hacker holds more than an entire day's reported trading volume in FUN and PROM."
Other small tokens the hacker sold have also slid, though less sharply. Reserve Rights is down 17.6% in 24 hours, RedStone is down 17.1% and Gitcoin is down 16.6%. Bitcoin and ether, by comparison, are down 1.8% and 2.9%.
Since the selling stopped, buyers have stepped in, and the pool price has jumped 75% in the past hour. The selling wallet still holds 580.8 million FUN, about 5.4% of the token's maximum supply, and that stash could return to the market at any time.
Source: CoinDesk
Trading involves risk.
Risk Disclaimer
