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Crypto exchange Binance has been hit with a cease and desist letter from Mark Longo, the owner of the internet sensation Peanut the Squirrel, for alleged copyright infringement. PNUT, the popular squirrel-inspired memecoin, fell nearly 10% following the news.
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Internet Squirrel Becomes Memecoin Sensation
On Sunday, Mark Longo, the owner of Peanut the Squirrel, announced that his legal team has started legal proceedings against the crypto exchange Binance. At Post X, Longo, also known as “Peanut Dad,” accused the exchange of using his intelligence without authorization.
The rescued squirrel became the talk of the Internet after Longo’s online videos went viral, amassing more than half a million followers on Instagram. However, Peanut was taken from Longo’s home along with a rescued raccoon named Fred.
Both animals were approved for rabies testing, as there are no approved methods for testing rabies in animals by the Centers for Disease Control and Prevention. After the news, the public condemned the death of Peanut, many lawyers criticized the actions of the authorities.
It also sparked a wave of Peanuts-inspired memecoins, leading to the creation of the Solana-based memecoin PNUT. Amid the controversy, the token quickly grew in popularity, hitting a market capitalization of $120 million in less than a week.
Binance announced the listing of memecoin on November 11, opening the trading floor that day. After this news, the price of PNUT went on a massive rally, rising to the top 10 memecoins by market cap.
The token hit the $1 billion milestone in less than a month, reaching $2.27 billion before pulling back. Last month, PNUT held above the $1 billion mark, with the price rising within the price range of $1.80-$1.00.
Crypto Exchanges Hit Cease and Desist Letter
According to the letter shared by the animal rights activist, Binance allegedly violated “Mr. Longo’s intellectual property rights.” His legal team claims that the exchange’s use of a copyrighted image of Peanut the Squirrel wearing a cowboy hat and the “identical” trademark of “PEANUT THE SQUIRREL and PNUT” on the listed memecoin violates their client’s “various copyrights and trademarks.”
The letter demanded that Binance respond to the letter by December 31St2024, to confirm the exchange received a letter and “cease all illegal activity.” Furthermore, Longo stated in his post that this was the first of many cease and desist letters to be issued.
PNUT experienced a 10.2% decline after the news, falling from the $1.17 level to the $1.05 support in 24 hours. The recovery drove the token near its lowest levels in more than a month, worrying investors about memecoin’s performance.
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It’s worth noting that Longo has voiced his displeasure with PNUT memecoin, accusing the crypto community of profiting off his pet peeve. As a protest, an animal rights activist founded a memecoin called Justice for Pnut and Fred (JUSTICE), which is facing controversy over alleged insider trading.
Longo also promoted another memecoin, Justice for Peanut (JFP), in his warning post, which saw a 159% increase after publication before losing all of its recent gains. At the time of writing, PNUT is trading at $1.10, down 5.1% in the daily timeframe.
Featured image from Unsplash.com, Chart from TradingView.com
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