Mark Longo, owner of viral internet sensation Peanut the Squirrel, sent a cease and desist letter to Binance for alleged copyright infringement over PNUT memecoin
PNUT memecoin reached a $2.27 billion market cap after Binance listing on November 11th, but dropped 10.2% following the legal warning
The legal letter demands Binance stop using Peanut’s image and trademark by December 31st, 2024
Longo has previously launched his own memecoins (JUSTICE and JFP) in protest of others profiting from his late pet
PNUT is currently trading at $1.10, maintaining a market cap above $1 billion despite recent controversy
Longo, known online as “Peanuts Dad,” announced on Sunday that his legal team had sent a cease and desist letter to Binance. The letter accuses the cryptocurrency exchange of unauthorized use of intellectual property, specifically referring to a copyrighted photograph of Peanut wearing a cowboy hat and the trademarked names “PEANUT THE SQUIRREL and PNUT.”
The story behind PNUT began with Peanut’s rise to internet fame through Longo’s viral videos, which attracted over half a million Instagram followers. However, tragedy struck when authorities seized Peanut and another rescued animal, Fred the raccoon, from Longo’s home. Both animals were euthanized for rabies testing, as current CDC protocols don’t allow for testing living animals.
Public outrage over Peanut’s death led to criticism from lawmakers and sparked the creation of several memecoins. Among these, the Solana-based PNUT token quickly gained traction in the crypto market, reaching a market capitalization of $120 million within its first week.
The token’s growth accelerated after Binance listed PNUT for spot trading on November 11th. This move catalyzed a price surge that pushed the memecoin into the top 10 by market capitalization, eventually reaching a peak of $2.27 billion in value.
For the past month, PNUT has maintained a market capitalization above $1 billion, with its price fluctuating between $1.80 and $1.00. However, the recent legal challenge has caused market uncertainty, leading to a 10.2% price drop from $1.17 to $1.05 within 24 hours of the announcement.
The cease and desist letter sets a deadline of December 31st, 2024, for Binance to acknowledge receipt and confirm they have stopped all activities that allegedly infringe on Longo’s intellectual property rights. Longo has indicated that this is just the first of several legal notices to be issued to various crypto exchanges.
This isn’t Longo’s first involvement with memecoins. He has previously expressed strong opposition to others profiting from his deceased pet’s image. In response, he launched his own memecoin called Justice for Pnut and Fred (JUSTICE), though this project faced criticism over insider trading allegations.
More recently, Longo promoted another token, Justice for Peanut (JFP), in the same post where he announced the legal action against Binance. This token experienced a dramatic 159% price increase following his post but quickly lost these gains.
1/ $JUSTICE is heavily controlled (~80%)
Mark Longo (@Squirrel_Dad12) accused the crypto community of profiting from the death of his squirrel, Peanut
The legal notice specifically targets Binance’s use of Peanut’s image and associated trademarks in their listing and promotion of the PNUT token. The letter argues that these elements are being used without proper authorization from Longo, who holds the rights to Peanut’s intellectual property.
Trading data shows that PNUT has experienced increased volatility since the legal challenge became public. The token’s current trading price of $1.10 represents a 5.1% decline in the daily timeframe, though it continues to maintain a substantial market presence.
Market observers have noted that despite the legal uncertainty, PNUT’s trading volume remains active across various exchanges. The token continues to hold its position as one of the larger memecoins by market capitalization, even as it faces these legal challenges.
The timing of the legal action comes during a period of increased scrutiny of memecoins in the cryptocurrency market. Various regulatory bodies have been examining the role and impact of these tokens in the broader crypto ecosystem.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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