Crypto exchange giant Binance recently found itself at the center of a legal storm. Mark Longo, the owner of the famed internet personality, Peanut the Squirrel, issued a cease and desist letter against Binance, alleging copyright infringement. As a result of this legal action, the value of PNUT, a popular memecoin inspired by Peanut, experienced a significant downturn, dropping nearly 10% shortly after the announcement.
Internet Squirrel Becomes a Memecoin Sensation
On a recent Sunday, Mark Longo, known affectionately as “Peanuts Dad,” revealed that he had taken legal steps against Binance. Through a post on platform X, Longo accused the leading crypto exchange of using his intellectual property without proper authorization. This action marked a significant chapter in the ongoing saga of Peanut the Squirrel, who gained widespread popularity through Longo’s viral online videos, attracting an impressive following on social media platforms like Instagram.
However, the tale took a tragic turn when Peanut, alongside a rescued raccoon named Fred, was confiscated from Longo’s residence. Both animals were subsequently euthanized for rabies testing, as no approved antemortem tests exist according to the Centers for Disease Control and Prevention. The public outcry was swift and vocal, with many condemning the actions taken against Peanut and rallying behind Longo in his quest for justice.
This widespread attention birthed a series of Peanut-inspired memecoins, with the Solana-based PNUT leading the pack. Amid the controversy, PNUT quickly gained traction, achieving a remarkable $120 million market capitalization in under a week. Binance’s decision to list the memecoin on November 11 further fueled its meteoric rise, propelling it to the top 10 memecoins by market cap. At its peak, PNUT’s value surged to a $2.27 billion market cap before experiencing a pullback. Despite the volatility, PNUT has consistently maintained a market cap above $1 billion, trading within a stable price range.
Crypto Exchanges Receive Cease And Desist Letter
The cease and desist letter, which was publicly shared by Longo, alleged that Binance had violated several intellectual property rights owned by him. The legal team representing Longo argued that the exchange’s use of a copyrighted photograph featuring Peanut the Squirrel in a cowboy hat, along with the trademark “PEANUT THE SQUIRREL and PNUT,” constituted a breach of copyrights and trademarks. The letter demanded a response from Binance by December 31st, 2024, to confirm receipt and cessation of all infringing activities. Longo indicated that this letter was the first of many to be issued to various exchanges.
Following the announcement, PNUT experienced a 10.2% decline, dropping from $1.17 to $1.05 within 24 hours. This downturn raised concerns among investors regarding the token’s future performance, especially as it approached its lowest levels in over a month.
Ongoing Discontent and New Ventures
Mark Longo has been vocal about his dissatisfaction with the PNUT memecoin, accusing elements within the crypto community of exploiting the memory of his late pet. In a move to counter this, Longo launched a rival memecoin named Justice for Pnut and Fred (JUSTICE). However, this initiative was not without controversy, as it faced allegations of insider trading.
Undeterred, Longo also promoted another memecoin titled Justice for Peanut (JFP). Following his public warning, JFP experienced a substantial 159% increase, although its gains were short-lived. As of the current market update, PNUT is trading at $1.10, reflecting a 5.1% decrease over the daily timeframe.
The unfolding legal battle and fluctuating market dynamics surrounding PNUT continue to capture the attention of both the crypto community and animal rights advocates. As developments unfold, stakeholders await Binance’s response and the potential implications for the broader memecoin landscape.
