Binance Faces a Lawsuit for a Memecoin. Why is the Exchange Betting on Memecoins?

The owner of Peanut the Squirrel has demanded that the leading cryptocurrency exchange stop using her photo and name, which are used to refer to one of the biggest cryptocurrency memes PNUT.

Mark Longo, the owner of Peanut the Squirrel, in whose honour the Peanut the Squirrel (PNUT) memecoin was launched, has demanded that the Binance exchange platform stop using the squirrel's photo and trademarks associated with the PNUT token without permission. At the same time, "in honour of the fight for justice", he launched another token - JFP (Justice for Peanut), which was quickly called a "scam" in the comments.

"My legal team has filed a lawsuit against Binance for the unauthorised use of my intellectual property, including images and stories involving my favourite animals. This is the first of several cease and desist letters. "I am committed to protecting my creative work and sending a clear message that unauthorised use of my intellectual property will not be tolerated," Longo wrote on social media.

He attached copies of the documents sent by his lawyers to Binance, claiming that the platform is using the registered trademarks Peanut the Squirrel, PNUT, and a photo of a squirrel wearing a cowboy hat, which "renowned animal rights activist" Long is currently registering, without permission.

The request to the platform demands the immediate cessation of the use of these symbols. The document also states that Long has the right to sue Binance and may seek compensation for each illegal use of his trademarks in amounts ranging from $30,000 to $150,000, along with reimbursement for legal expenses.

The PNUT cryptocurrency was launched after the high-profile story of the squirrel that was euthanized. The first PNUT tokens were issued on October 31 on the Pump.fun platform on the Solana network, according to SolScan. A total of 999 million PNUT tokens are in circulation. The token developers remain anonymous.

The coin was mentioned by supporters of U.S. President-elect Donald Trump during his election campaign. Since trading began on November 3, the price of PNUT has increased by nearly 2000%. The sharpest price jump was recorded after its listing on Binance on November 11. The coin then surged over 300%, with its market capitalization exceeding $1 billion.

Binance’s Perspective on Memecoins

In 2024, Binance began trading a variety of memecoins. In early December, the largest cryptocurrency exchange published an article explaining the phenomenon of joke cryptocurrencies.

Memecoins are gaining popularity due to their accessibility and the potential for quick earnings (albeit with significant risk). Additionally, they appeal to younger generations, who may view choosing these coins as a way to “vote” against traditional economic structures, which they perceive as outdated or ineffective.

Binance also noted that memecoins have become cultural icons, creating communities where purchasing a token can symbolize belonging. Some memecoins often act as bridges between financial ambitions and cultural ties, transforming investments into expressions of identity and belonging, according to the report's authors.

According to Binance, memecoins are no longer just jokes or passing trends but represent a powerful combination of financial opportunities and cultural expression. While the volatility of these assets is currently a defining feature, some projects are finding ways to combine fun with utility, ensuring their relevance in an unstable market, the report states.

Cryptocurrency trading volumes indicate that retail investors are now choosing memecoins, making this category not only an essential part of the industry but also a goldmine for exchanges. According to CoinGecko, as of December 16, the market capitalization of memecoins stands at $130 billion, with a daily trading volume of $14.7 billion.