Cryptocurrency exchange Binance was sent a cease and desist letter by Mark Longo, the owner of Peanut the Squirrel, alleging copyright infringement. PNUT, the popular memecoin inspired by the squirrel, dropped nearly 10% following this news.
Internet Squirrel Becomes Memecoin Phenomenon
On Sunday, Mark Longo, the owner of Peanut the Squirrel, announced that his legal team has filed a lawsuit against the cryptocurrency exchange Binance. In a post on X, Longo, also known as 'Peanuts Dad,' accused the exchange of using his intellectual property without permission.
The rescued squirrel became an internet phenomenon after Longo's online videos went viral, attracting over half a million followers on Instagram. However, Peanut was seized from Longo's home along with a rescued panda named Fred.
Both animals were euthanized for rabies testing, as the Centers for Disease Control and Prevention did not approve any rabies testing methods before death for animals. Following this news, the public condemned Peanut's death, with some lawmakers criticizing the actions of the authorities.
It also sparked a wave of Peanut-inspired memecoins, leading to the creation of the Solana-based memecoin PNUT. Amid the controversies, this token quickly gained popularity, reaching a market capitalization of $120 million in less than a week.
Binance announced the listing of the memecoin on November 11, opening spot trading on the same day. Following the news, the price of PNUT surged, climbing into the top 10 memecoins by market capitalization.
The token reached a milestone of $1 billion within less than a month, achieving a market capitalization of $2.27 billion before dropping. Over the past month, PNUT has remained above the $1 billion mark, with prices fluctuating between $1.80 and $1.00.
Cryptocurrency exchanges hit with cease and desist letter
According to the letter shared by the animal rights activist, Binance is accused of violating 'the intellectual property rights belonging to Mr. Longo.' His legal team argues that the exchange's use of the copyrighted image of Peanut the Squirrel wearing a cowboy hat and the 'identical' trademark of 'PEANUT THE SQUIRREL and PNUT' in the listed memecoin violates 'multiple copyrights and trademarks' of their client.
The cease and desist letter requires Binance to respond by December 31, 2024, to verify that the exchange has received the letter and 'has ceased all infringing activities.' Furthermore, Longo revealed in his post that this is the first of many cease and desist letters that have been issued.
PNUT faced a 10.2% drop after the news, falling from $1.17 to a support level of $1.05 within 24 hours. This decline brought the token down near its lowest point in over a month, causing investors to worry about the performance of the memecoin.
Notably, Longo had previously expressed his dissatisfaction with the memecoin PNUT, accusing the cryptocurrency community of profiting from his deceased pet. In protest, the animal rights activist launched a memecoin named Justice for Pnut and Fred (JUSTICE), which became controversial due to insider trading allegations.
Longo also promoted another memecoin, Justice for Peanut (JFP), in his warning post, which surged 159% after publication before losing all its recent gains. At the time of writing, PNUT was trading at $1.10, down 5.1% in the daily timeframe.
