Important Binance Trading Update Concerning Peanut the Squirrel (PNUT) and Other Meme Coins: Details

TL;DR

• The exchange will increase collateral ratios for six altcoins, including PNUT, starting December 17.
• The squirrel-themed meme coin surged in value after its initial Binance listing and sparked widespread interest due to its backing from prominent people like Elon Musk.

The Involved Assets

The world’s leading cryptocurrency exchange will update the collateral ratio for numerous altcoins under Portfolio Margin from December 17. The effort will be completed within approximately one hour and affect the following assets: Peanut the Squirrel (PNUT), 1MBABYDOGE (1MBABYDOGE), Eigenlayer (EIGEN), Reserve Rights (RSR), Movement (MOVE), and Magic Eden (ME).

The collateral ratios of the aforementioned tokens will be raised by 10% each. PNUT’s ratio will be increased from 35% to 45%, while all others will be lifted from 10% to 20%.

“Collateral ratio will affect the Unified Maintenance Margin Ratio (uniMMR). Users should monitor uniMMR closely to avoid any potential liquidation or losses that may result from the change of collateral ratio,” the company warned. 

The collateral ratio represents the amount of assets required to secure a loan or maintain an open position. It is usually expressed as a percentage and compares the value of the collateral to the borrowed capital. A higher ratio provides greater assurance to the lender, increasing the chances of recovering funds even if the market heads south.

Binance and PNUT

The exchange initially embraced the squirrel-themed meme coin in mid-November, listing it with a seed tag. The move was one of the factors fueling a massive price increase for the asset. 

A few days later, the firm doubled down on its support, adding the trading pairs PNUT/BRL and PNUT/EUR to its Binance Spot program. 

To the uninitiated ones, Peanut the Squirrel saw the light of day at the start of November. It is inspired by a pet squirrel named Peanut, which reportedly bit a Department of Environmental Conservation (DEC) worker during a seizure operation and was later euthanized to test for rabies.

Its death sparked significant controversy, with many arguing that the action was unnecessary, as the animal had been living indoors for years without any signs of illness. Among the critics was Elon Musk, who called the move a “government overreach” and claimed that “Donald Trump would save the squirrels.”

The huge interest in PNUT (along with other elements) drove a significant price surge, allowing some early investors to make millions by strategically timing their entries and exits. If you’re curious about how one trader transformed a $17 investment in the meme coin into over $3 million, check out our dedicated video below:

The post Important Binance Trading Update Concerning Peanut the Squirrel (PNUT) and Other Meme Coins: Details appeared first on CryptoPotato.