The short version
- FUNToken fell 95% in its main Uniswap pool after the Binance hacker sold 134.1 million stolen FUN for 111.5 ETH, about $250,000.
- The pool now holds only about $16,000, so the hacker got roughly a fifth of what the tokens were worth, and FUNToken has asked exchanges to pause FUN deposits.
- The crew is watching the 580.8 million FUN still in the hacker’s wallet, about 5.4% of supply, and the other small tokens it holds.
FUNToken just learned what happens when a thief holds more of your coin than the market can take. The hacker behind the $6.3 billion Binance theft sold 134.1 million FUN on Uniswap overnight, and the price in FUN’s main pool fell 95% in four hours.
The haul from all that selling was small: 111.5 ETH, or about $250,000. FUNToken, the 2017 casino token that started life as FunFair, has asked exchanges to switch off FUN deposits.
FUNToken posted this alert at 02:04 UTC, while the selling was still going on:
🚨 Important Security Alert 🚨
We have been informed of a security breach at Binance resulting in the theft of $FUN tokens.
As a precaution, we have requested exchanges to temporarily disable $FUN deposits to protect the ecosystem.
However, trading on decentralized exchanges
How the Binance Hacker Dumped FUNToken
The FUN came straight out of Binance. At 20:24 UTC on Thursday, a Binance hot wallet sent 714.9 million FUN to the attacker’s main wallet in one transfer, part of the wider drain. At 23:28 UTC the attacker moved all of it to a fresh address and started selling three minutes later.
More than 150 sales followed, the last at 04:17 UTC on Friday. In total the selling address sold 134.1 million FUN for 111.5 ETH. Before the dump those tokens were worth about $1.2 million, so the hacker kept roughly a fifth of their value.
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Why Did the FUNToken Price Crash So Hard?
Because there was almost nobody to sell to. FUN’s main Uniswap pool now holds about $16,000 in total, so every sale pushed the price down a step. FUN fell from 0.0000037 ETH ($0.0088) to 0.00000017 ETH ($0.00038) there by 03:00 UTC, a drop of 95%.
FUNToken told liquidity providers to pull their money from DEX pools “immediately,” since trading on Uniswap “cannot be halted.” That spares them from buying the dump, but a thinner liquidity pool also means bigger slippage on every sale.
The damage was smaller on centralized exchanges, where deposits are now blocked. CoinGecko shows FUN at $0.0030 at the time of writing, down 65% in 24 hours.
SIDE TRAIL: Binance Hack: $6.3B Drained in the Biggest Crypto Theft Ever, Withdrawals Paused
What Happens to the Rest of the Stolen FUN?
The hacker still holds most of it. At 06:30 UTC the 580.8 million FUN that weren’t sold went back to the main wallet. That is about 5.4% of FUN’s 10.8 billion supply, worth roughly $1.8 million at today’s price. FUNToken has not said whether it can block them.
The dump was flagged in advance. Joshua Frank, CEO of data firm The Tie, put FUN at the top of his watchlist of the hacker’s tokens almost two hours before the selling began. PROM, RSR, RED, OGN, SOPH, ERA and GTC are on the same list, and the hacker holds more than a full day’s trading volume in some of them.
TRAIL MAP: DeFi Basics: Swaps, Liquidity Pools and Impermanent Loss
The crew is watching whether the remaining 580.8 million FUN hit Uniswap next, and which small token on Frank’s list gets sold after it.
In crypto since 2016. Trades the macro picture and reads the market on the high timeframes.
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