Starting December 17, Binance will raise the collateral ratio for six altcoins in its portfolio margin program. Notably, the meme coin inspired by the squirrel, PNUT, which has garnered special attention from figures like Elon Musk, is also included in these changes.
The world's leading cryptocurrency exchange, Binance, will launch an update on the collateral ratio for certain altcoins on December 17. This change is expected to take place within an hour and will affect Peanut the Squirrel (PNUT), 1MBABYDOGE, Eigenlayer (EIGEN), Reserve Rights (RSR), Movement (MOVE), and Magic Eden (ME). Each token will see a 10% increase in its collateral ratio. Specifically, the collateral for PNUT will increase from 35% to 45%, while other tokens will rise from 10% to 20%.
In a notice to its users, Binance emphasized the importance of monitoring the Unified Maintenance Margin Ratio (uniMMR) to prevent the risk of liquidation or losses due to collateral ratio adjustments. The collateral ratio indicates the amount of assets required to secure borrowing or maintain an open position. It is calculated as a percentage, comparing the value of collateral to the loan amount. A higher ratio provides lenders with more assurance, enhancing resilience even during market downturns.
Initially listed by Binance in mid-November with a seed token, the meme coin inspired by the squirrel, PNUT, has seen a significant increase in value. This price surge is partly due to the support from the exchange. Later, the trading pairs PNUT/BRL and PNUT/EUR were introduced to the Binance Spot Trading program, further enhancing liquidity for this coin.
For those unfamiliar, Peanut the Squirrel appeared in early November, inspired by an incident involving a pet squirrel named Peanut.
According to reports, the squirrel bit a staff member of the Department of Environmental Conservation during a capture operation and was subsequently killed for rabies testing. This incident sparked widespread controversy, as Peanut showed no obvious symptoms of disease despite living indoors for many years. Elon Musk criticized the state intervention, calling it "government interference" and asserting that, "Donald Trump will save the squirrel."
The subsequent interest in PNUT contributed to its significant price increase, providing substantial profits for early investors. One trader had an excellent trading strategy, turning a modest investment of $17 into over $3 million. For deeper insights into this unique trading success, check out our detailed analysis in the video below.
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