coindesk.com
A little-known token launched in 2017 crashed more than 90% early Friday after the Binance hacker dumped it into a market too “thin” to absorb the selling.
FUNToken (FUN), formerly known as FunFair, plunged more than 90% on the Uniswap pool where the hacker was selling. It fell from about 0.0000037 wrapped ether (WETH) to 0.00000017 WETH, according to GeckoTerminal data.
Its dollar price saw a similar crash. Across all markets, FUN is down 68% in 24 hours, CoinGecko data show. Uniswap is a decentralized exchange where people trade tokens directly against pooled funds rather than through a company's order book.
FUN dates back to the 2017 crypto boom. Its developer, FunFair Technologies, raised $26 million in four hours in a token sale that July to build blockchain-based online casino games. The project now operates as FUNToken.
The crash in its market price can be attributed to the Binance attacker, who took more than $6 billion from the exchange's hot wallets, the internet-connected wallets exchanges use to handle withdrawals. That makes it the largest crypto hack on record.
The haul included major assets such as tether USDT$0.9983, USD Coin $USDC$0.9996, bitcoin BTC$77,963.00, ether $ETH$2,228.93, TRON TRX$0.3336 and solana (SOL), according to Arkham Intelligence. It also included smaller tokens such as FUN, Prom (PROM), Reserve Rights (RSR), RedStone (RED), Origin Protocol (OGN) and Gitcoin (GTC), per an analysis by The Tie's Co-founder and CEO Joshua Frank.
Stablecoin issuers Tether and Circle moved quickly to freeze the stolen tokens they control, and several other issuers followed. FUNToken asked centralized exchanges to temporarily disable FUN deposits as a precaution.
However, trading on decentralized exchanges such as Uniswap, however, cannot be halted, and the hacker used that opening.
Hacker liquidates FUN
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, 0x06ea…685f. Three minutes later, that address began selling into the FUN/WETH liquidity pool on decentralized exchange Uniswap.
The address made over 150 sales over subsequent hours, with all but one into the FUN/WETH pool on Uniswap v2. WETH is a tokenized version of ether. The other sale went through PancakeSwap, another decentralized exchange. The last sale landed at 04:17 UTC on Friday.
In all, the wallet sold 134.1 million FUN for 111.5 $ETH, about $250,000, according to Etherscan data.
