PNUT Memecoin Declines 10% After Legal Action Against Binance
Crypto exchange Binance received a cease and desist letter from Mark Longo, owner of Peanut the Squirrel, for alleged copyright infringement. The memecoin PNUT, inspired by the squirrel, experienced nearly a 10% decline after this news.
Peanut the Squirrel's Rise to Fame
Mark Longo announced legal action against Binance, accusing the exchange of unauthorized use of his intellectual property in an X post. Longo, known as “Peanuts Dad,” claimed the exchange used a copyrighted photograph of Peanut wearing a cowboy hat.
Peanut gained fame through Longo’s viral videos, attracting over half a million Instagram followers. Following an incident where Peanut and a rescued raccoon named Fred were seized, both animals were euthanized for rabies testing, leading to public outrage and criticism of the authorities.
The controversy spurred the creation of Peanut-inspired memecoins, including the Solana-based PNUT, which quickly reached a $120 million market cap within a week. Binance listed PNUT on November 11, leading to significant price increases and positioning it among the top 10 memecoins by market cap.
PNUT achieved a $1 billion market cap milestone within a month, peaking at $2.27 billion before retracing. It has maintained a valuation above $1 billion, with prices fluctuating between $1.80 and $1.00.
Legal Action Against Binance
Longo's cease and desist letter claims that Binance infringed on his intellectual property rights through the use of the photograph and trademark “PEANUT THE SQUIRREL and PNUT.” The letter demands that Binance confirm receipt by December 31, 2024, and cease all infringing activities. Longo indicated that multiple cease and desist letters would follow.
Following the news, PNUT dropped 10.2%, falling from $1.17 to $1.05 within 24 hours, marking its lowest levels in over a month.
Longo previously expressed dissatisfaction with the PNUT memecoin, accusing the crypto community of exploiting his deceased pet for profit. In response, he launched a protest memecoin, Justice for Pnut and Fred (JUSTICE), which faced insider trading allegations. Longo also promoted another memecoin, Justice for Peanut (JFP), which initially surged 159% before losing its gains. As of now, PNUT is trading at $1.10, reflecting a 5.1% decline in the daily timeframe.
