Binance Hack Sends FUNToken Down 90% in a Thin Market
The sell-off followed the Binance hack, which also hit smaller tokens like FUN. On Uniswap, with only about $16,000 in liquidity, the price drop accelerated sharply.
Key Takeaways
- FUNToken fell more than 90% on Uniswap on Friday and 68% across all markets in 24 hours after the Binance hacker sold it.
- The sale happened in a thin pool with about $16,000 in liquidity, causing the price to collapse quickly.
- The Binance hack involved more than $6 billion from hot wallets and also hit smaller tokens like FUN.
FUNToken (FUN) dropped sharply on Friday after the Binance hacker sold the token in a market too small to absorb the trade. On the Uniswap pool, FUN fell more than 90%, while the price across all markets dropped 68% in 24 hours.
Sale in a Thin Pool
The token fell on the Uniswap pool of about 0.0000037 wrapped ether (WETH) to 0.00000017 WETH, according to GeckoTerminal. The dollar price showed a similar drop. The sale took place in a pool with about $16,000 (€14,400) in liquidity, split between FUN and WETH, so even relatively small sales pushed the price down fast.
Uniswap works differently from a regular crypto exchange. There is no order book with buyers and sellers waiting at fixed prices. Instead, traders swap tokens directly against a shared liquidity pool. The smaller the pool, the more a sale can hit the price.
From 2017 to Now
FUN dates back to the 2017 crypto boom. Back then, developer FunFair Technologies raised $26 million (€23.4 million) in four hours to build blockchain-based online casino games. The project now operates under the name FUNToken.
The sale was tied to the major hack at Binance, where more than $6 billion (€5.4 billion) was taken from hot wallets. That is the biggest crypto theft ever. According to Arkham Intelligence, besides major assets like Tether, USD Coin, Bitcoin, Ether, and Solana, smaller tokens were also involved, including FUN, PROM, RSR, RED, OGN, and GTC.
Stablecoin issuers Tether and Circle quickly froze tokens they could control, and other issuers followed. FUNToken asked centralized exchanges to temporarily pause FUN deposits as a precaution. But on decentralized exchanges like Uniswap, trading cannot be stopped, and that is what the hacker used.
The broader fallout from the attack is also showing up on other trading platforms: institutional withdrawals on crypto exchanges increased after the hack put more pressure on trust in centralized exchanges.
Why This Matters
For European crypto investors, this shows how vulnerable smaller tokens can be when large amounts suddenly hit the market. The Binance hack also puts the spotlight back on exchange security and on how much liquidity a market really has when a big wallet starts selling. That matters for anyone trading altcoins with a limited pool or low daily volume.
