A massive selloff by the hacker linked to Binance’s security breach sent FUNToken (FUN), a cryptocurrency dating back to 2017, down more than 90% on Uniswap early Friday. The attacker sold large quantities into a liquidity pool too small to handle the incoming supply without a sharp price adjustment.

FUN, previously known as FunFair, dropped from around 0.0000037 wrapped ether (WETH) to approximately 0.00000017 WETH in the affected pool, according to GeckoTerminal. CoinGecko data shows the token was down 68% across all markets over 24 hours.

FUN was launched during the 2017 crypto boom. Its developer, FunFair Technologies, raised $26 million in a four-hour token sale in July 2017 to build blockchain-powered online casino games. The project has since adopted the FUNToken name.

The selling came from the attacker responsible for the Binance breach, which involved more than $6 billion in cryptocurrency taken from the exchange’s hot wallets. These internet-connected wallets are used to facilitate withdrawals, and the incident has been described as the largest crypto hack on record.

Arkham Intelligence identified USDT, USDC, Bitcoin, Ether, TRON and Solana among the stolen assets. The attacker also held smaller cryptocurrencies, including FUN, PROM, RSR, RED, OGN and GTC, according to Joshua Frank, co-founder and CEO of The Tie.

Stablecoin issuers Tether and Circle quickly froze stolen tokens under their control, while other issuers followed suit. FUNToken asked centralized exchanges to temporarily suspend FUN deposits as a precaution. Decentralized exchanges such as Uniswap, however, continued processing trades, giving the attacker another route to liquidate the holdings.

Attacker Offloads 134.1 Million FUN Through Uniswap

At 23:28 UTC on Thursday, a wallet labeled “Binance Hot Wallet Exploiter 2” by Etherscan transferred 714.9 million FUN to a newly created address, 0x06ea…685f.

The receiving wallet began selling the tokens through Uniswap’s FUN/WETH pool just three minutes later. More than 150 sales followed over the next several hours, with all but one executed on Uniswap v2. The remaining transaction went through PancakeSwap.

The final sale took place at 04:17 UTC on Friday. Etherscan records show that the wallet exchanged 134.1 million FUN for 111.5 ETH, worth approximately $250,000.

Frank had earlier valued the stolen FUN holdings at $6.23 million. Based on that estimate, the tokens sold had a notional value of around $1.17 million, meaning the attacker collected only about 21% of that amount.

Small Liquidity Pool Magnifies FUN’s Collapse

The scale of the price decline was closely linked to the limited liquidity available on Uniswap. The FUN/WETH pool held approximately $16,000 in combined assets at the time of reporting, divided roughly equally between the two tokens.

Uniswap uses automated market-making pools rather than traditional order books. When a trader sells FUN, the pool receives additional tokens and releases WETH in return. The price changes as the balance shifts, making large trades particularly disruptive when the pool contains relatively little liquidity.

Frank had warned that the hacker’s holdings could overwhelm smaller token markets. In an analysis posted on X, he compared the value of the stolen tokens with their respective daily trading volumes.

FUN ranked at the top, with the hacker’s holdings valued at $6.23 million, equivalent to 252% of its daily volume. PROM was also among the tokens facing significant selling risk.

“The hacker holds more than an entire day’s reported trading volume in FUN and PROM,” Frank wrote.

He added that reported trading volume is only a rough indicator of how much selling pressure a market can absorb.

FUN Price Bounces as Hacker Retains 580.8 Million Tokens

FUN recovered after the attacker stopped selling, with its price in the Uniswap pool rising 75% over the following hour as buyers returned.

The remaining supply in the attacker’s wallet could still create volatility. Etherscan shows the address holds approximately 580.8 million FUN, equal to about 5.4% of the token’s maximum supply.

Other smaller assets associated with the attacker also moved lower. Reserve Rights (RSR) declined 17.6% over 24 hours, while RedStone (RED) lost 17.1% and Gitcoin (GTC) fell 16.6%.

Origin Protocol (OGN), yearn.finance (YFI) and 1inch (1INCH) dropped between 9% and 13.6%, according to CoinGecko. Bitcoin and Ether recorded smaller losses of 1.8% and 2.9%, respectively.

Etherscan data also shows the attacker’s main wallet, 0x5227…2f8c, sold these tokens through dozens of transactions on Uniswap and PancakeSwap.

Frank named FUN, PROM, RSR, RED, OGN, SOPH, ERA and GTC as the main assets to monitor. He said the potential impact depends not only on the value stolen but also on how much of the remaining supply can still move, how quickly it can be sold and whether available liquidity can absorb further transactions.