## Binance Under Fire for Listing Peanut the Squirrel Meme Coin: Pump and Dump Concerns Emerge
Binance, the world’s largest cryptocurrency exchange, is facing criticism for listing Peanut the Squirrel (PNUT/USD), a meme coin on Solana (SOL/USD) inspired by the late social media sensation, Peanut.
The squirrel’s unexpected death, following a potential rabies exposure, ignited a flurry of Peanut-themed tokens. Critics accuse Binance of capitalizing on these high-risk, low-liquidity coins that are susceptible to manipulation for quick profits. Immediately after the listing announcement, PNUT surged by a staggering 343%, reaching a market capitalization of $420 million, according to Coingecko data.
Elon Musk, a vocal figure in the crypto world, weighed in on the controversy, tweeting his condolences for Peanut.
He previously campaigned for Peanut in the 2020 US election, humorously advocating, “Go vote for Peanut” during an appearance on the Joe Rogan podcast.The controversy surrounding Binance’s listing of PNUT on November 11th has sparked debate among crypto influencers. Some argue that Binance has transformed into a “pump and dump engine,” targeting low-cap tokens controlled by insiders to generate revenue through orchestrated price spikes.
“We can only assume that Binance is specifically targeting low-cap ‘dead’ meme coins that are controlled by a small number of insiders,” one influencer stated, calling for transparency on listing fees and any token-based payments.
While concerns about manipulation are voiced, others have profited from PNUT’s volatile nature. One influencer boasted of turning a $5,000 investment into $250,000 following the Binance listing. Former venture capitalist Su Zhu defended the listing with humor, referring to Peanut as “the squirrel who saved the election,” acknowledging the widespread appeal of Peanut’s story.
In response to the mounting criticism, Binance has labeled PNUT and another meme coin, Act I: The AI Prophecy (ACT/USD), with a “Seed Tag,” warning users about the tokens’ high-risk nature. This tag mandates traders to complete a quiz acknowledging the risks before trading.
Binance’s announcement emphasized the significant price fluctuations associated with ACT and PNUT due to their low liquidity and recent launch. This controversy highlights the growing concern about investor protection in the cryptocurrency market, especially regarding the listing of highly volatile meme coins.
As Binance faces scrutiny over its meme coin listings, the industry awaits insights from Benzinga’s Future of Digital Assets event on November 19th. Industry leaders will discuss the role of high-volatility tokens and the need for safeguards to protect retail investors in the evolving cryptocurrency landscape.
