Binance is facing backlash for listing Peanut the Squirrel PNUT/USD, a meme coin on Solana SOL/USD inspired by the late social media pet squirrel Peanut, which had garnered over 666,000 followers with its charming videos.
What Happened: The squirrel's unexpected death has fueled the launch of several Peanut-themed tokens, with critics accusing Binance of capitalizing on high-risk, low-liquidity coins that can be exploited for quick profits.
Following the listing announcement, PNUT exploded for a 343% gain, according to Coingecko data. The meme coin is trading at a market capitalization of $420 million.
Tech mogul Elon Musk, a vocal supporter of President Donald Trump, tweeted his condolences for Peanut, who was euthanized by New York authorities due to potential rabies exposure after reportedly biting a person involved in an investigation.
“Go vote for Peanut,” Musk had said prior to the election in an appearance on the Joe Rogan podcast.
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Why It Matters: The controversy over Binance’s listing of PNUT on Nov. 11 has prompted prominent crypto influencers to question the platform's motives.
One influencer claimed that Binance has become a "pump and dump engine," alleging that the exchange targets low-cap tokens controlled by insiders to generate revenue through sudden price jumps.
"We can only assume that Binance is specifically targeting low-cap ‘dead' meme coins that are controlled by a small number of insiders," he said, calling for transparency on listing fees and any token-based payments.
While critics have voiced concerns, others have profited from PNUT's volatility.
Another influencer claimed to have turned a $5,000 investment in PNUT into $250,000 following its Binance listing.
Former venture capitalist Su Zhu humorously defended the listing, referring to Peanut as "the squirrel who saved the election," a nod to the widespread appeal of Peanut's story.
In response to these concerns, Binance marked PNUT and another meme coin, Act I: The AI Prophecy ACT/USD, with a "Seed Tag," warning users of the tokens’ high-risk nature.
The Seed Tag requires traders to complete a quiz acknowledging the risks before participating in trades.
Binance's announcement emphasized that ACT and PNUT are prone to significant price swings due to their low liquidity and recent launch.
As Binance faces scrutiny over its meme coin listings and broader concerns about investor protection, these topics will likely be explored at Benzinga's Future of Digital Assets event on Nov. 19., where industry leaders will discuss the role of high-volatility tokens in crypto and the need for safeguards for retail investors
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