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Cryptocurrency exchange Binance has been hit with a cease-and-desist letter from Mark Longo, owner of internet sensation Peanuts the Squirrel, for alleged copyright infringement. PNUT, a popular meme coin inspired by squirrels, fell nearly 10% on the news.
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Internet squirrel becomes meme coin sensation
On Sunday, Peanuts the Squirrel owner Mark Longo announced that his legal team has filed a lawsuit against cryptocurrency exchange Binance. In a post on X, Longo, also known as “Peanuts Dad,” accused the exchange of using his intellectual property without permission.
Longo has sent a legal warning to cryptocurrency exchanges. Source: Mark Longo of X
The rescued squirrel became an internet sensation after Longo's online video went viral, amassing more than 500,000 followers on Instagram. However, Peanut is seized from Longo's home along with a rescued raccoon named Fred.
Both animals were euthanized for rabies testing, as there is no Centers for Disease Control and Prevention-approved ante-mortem rabies testing method for animals. Following the news, the public condemned Peanut's death, and several members of Congress criticized the actions of authorities.
This also sparked a wave of Peanuts-inspired meme coins, resulting in the creation of Solana-based meme coin PNUT. Amid the controversy, the token quickly gained popularity, reaching a market capitalization of $120 million in less than a week.
Binance announced the listing of Memecoin on November 11th and began spot trading on the same day. Following this news, PNUT's price rose significantly, making it one of the top 10 meme coins by market capitalization.
The token reached the $1 billion milestone within a month and reached a market cap of $2.27 billion before retracing. For the past month, PNUT has remained above $1 billion, with the price hovering between $1.80 and $1.00.
Virtual currency exchange receives suspension order
A letter shared by animal rights activists claims that Binance has violated “intellectual property rights owned by Mr. Longo.” His legal team claims the exchange has used a copyrighted photo of Peanuts the Squirrel wearing a cowboy hat and the “identical” trademark “Peanuts the Squirrel and Peanuts” on a publicly traded meme coin. The lawsuit alleges that its use infringes the client's “various copyrights and trademarks.”
The letter required Binance to respond to the letter by December 31, 2024, confirming that the exchange had received the letter and “ceased all infringing activity.” Additionally, Longo clarified in his post that this is the first of multiple cease and desist letters issued.
Following this news, PNUT faced a 10.2% decline, falling from the $1.17 level to the $1.05 support in 24 hours. The retrace sent the token near its lowest price in more than a month, leaving investors concerned about the memecoin's performance.
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Notably, Longo has previously expressed dissatisfaction with the PNUT meme coin, accusing the cryptocurrency community of profiting from his late pet. In protest, animal rights activists launched a meme coin called Justice for Punat and Fred, which sparked controversy over insider trading allegations.
Longo also promoted another meme coin, Justice for Peanuts (JFP), in a warning post, which rose 159% after its launch and has since lost all of its recent gains. At the time of writing, PNUT is trading at $1.10, down 5.1% on a daily basis.
PNUT's 1 week chart performance. Source: PNUTUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com
