Why Peanut the Squirrel Owner Is Battling Binance Over the $2.25B PNUT Memecoin Frenzy

The creator of Peanut the Squirrel, Mark Longo, has accused Binance of exploiting his mascot and branding in the $2.25 billion PNUT memecoin frenzy. The conflict underscores growing concerns over ethical practices in cryptocurrency markets.

Binance Faces Legal Threat Over $2.25B PNUT Memecoin

Binance, a cryptocurrency exchange, has been sent with a cease-and-desist letter by Peanut the Squirrel owner Mark Longo, who is claiming that Binance has infringed upon his trademark with its PNUT memecoin.

Binance promoted the Peanut the Squirrel (PNUT) cryptocurrency using Longo's "Peanut the Squirrel" brand and mascot image without his consent, according to Longo. According to Longo's complaint, he began utilizing the PNUT brand in 2017 for animal welfare and education projects.

A cease-and-desist letter has been sent to the cryptocurrency exchange, threatening legal action and fines of up to $150,000 per violation unless the exchange promptly stops utilizing the PNUT trademarks and mascot image.

Memecoin Frenzy Raises Questions About Brand Use

Since memecoins and viral branding might cause legal boundaries to become blurry, the case brings up a significant problem regarding crypto's intellectual property (IP) rights.

As of this writing, Binance has chosen not to comment on the claims. An important precedent for intellectual property rights in the new memecoin market may be established in this case, according to legal experts.

Unauthorized use of the names "PEANUT THE SQUIRREL" and "PNUT," as well as a particular copyrighted image of the squirrel mascot, is included in the infringement, according to Longo's legal team.

Viral Success Sparks Legal Disputes

The letter asserts that Binance's PNUT-themed cryptocurrency and its branding, which mimics the appearance of the mascot, allegedly lead customers astray and suggest a partnership or support that Longo has not authorized.

According to the cease-and-desist letter, the crypto exchange is engaging in illegal duplication and display of protected intellectual property, which violates the United States Copyright Act.

Following a viral occurrence in late October that attracted public attention and media coverage, the PNUT memecoin rose quickly, prompting Longo to write a letter and make a public declaration.

Memecoins based on Peanut the Squirrel emerged on the cryptocurrency market in a flash, despite the terrible narrative behind them, Cointelegraph shares.

PNUT Token Soars to $2.25 Billion Market Cap

On November 14th, the PNUT token reached a market cap of $2.25 billion, and two Peanut-themed memecoins were among the top ten tokens according to Dexscreener's 24-hour charts.

Under December 31, Binance is required under the public cease-and-desist notice to halt all infringement-related operations and to submit written verification of compliance.

Longo, inventor of Peanut the Squirrel, may pursue damages, injunctive relief, and reimbursement of legal fees in a US court if the cryptocurrency exchange does not comply with his legal requests.

The situation could get worse if major exchanges like Kraken and Coinbase decide to list PNUT.