Binance Exploiter Sells FUN Token, Driving 90%+ Drop in Uniswap Pool
A hacker tied to a Binance exploit sold large amounts of the little-known 2017 token FUN, along with smaller tokens RAD and OGN, on Uniswap. Sources differ on the size of the drop, with CoinDesk reporting about 90% and The Defiant reporting 95% in the Uniswap pool.
Written by CoinArticle’s AI Newsroom · from 2 cited sources. How we work
The Sell-Off
The address linked to the Binance exploit sold large volumes of FUN, a token launched in 2017, into thin markets where liquidity could not absorb the orders. CoinDesk reported that FUN fell about 90%, while The Defiant put the decline in the Uniswap pool at 95%. The two figures measure slightly different things and the difference has not been reconciled by either outlet, so readers should treat the exact percentage as uncertain.
The Defiant also reported that the same exploiter address sold RAD and OGN on Uniswap. CoinDesk described the selling as covering FUN and other smaller tokens, and did not name RAD or OGN in the material it published.
Why Thin Liquidity Mattered
CoinDesk's account centers on market depth. The exploiter dumped FUN and other small-cap tokens into pools too shallow to absorb sales of that size, which is the mechanism behind the sharp price collapse. Both reports describe the pool-level impact rather than a broad market effect across centralized exchanges.
Remaining Supply and Wallet Activity
The Defiant reported that about 580.8 million unsold FUN tokens were transferred back to the collection wallet, meaning a portion of the holdings had not yet been sold at the time of reporting. CoinDesk's coverage did not cite a comparable figure for remaining supply, so this detail rests on a single source.
The reporting available does not establish the total value extracted, the full list of affected tokens, or whether the remaining FUN supply will be sold. Further on-chain analysis would be needed to confirm those points.
Why It Matters
For Traders
Shallow pools can reprice sharply on a single large sale, so positions in low-liquidity tokens carry execution risk well beyond their headline price.
For Investors
Exploit proceeds converted into thinly traded tokens highlight how exchange security incidents can spill into the price discovery of unrelated legacy assets.
For Builders
Pool depth thresholds and sell-side guardrails on AMMs matter when long-dormant tokens with small liquidity can be dumped at scale.
This article is for information only and is not financial advice. Read the full disclaimer.
