Important Update on Binance Trading on 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 listing on Binance and garnered widespread interest due to its support from notables such as Elon Musk. The assets involved

The world’s leading cryptocurrency exchange will update the collateral ratio of numerous altcoins under portfolio margin starting December 17th. The effort will be completed in about an hour and will affect the following assets: Peanut the Squirrel (PNUT), 1MBABYDOGE (1MBABYDOGE), Eigenlayer (EIGEN). ), Reserve Rights (RSR), Movement (MOVE) and Magic Eden (ME).

The guarantee ratios of the mentioned tokens will be increased by 10% each. The PNUT ratio will be increased from 35% to 45%, while the rest will be raised from 10% to 20%.

“The margin ratio will affect the unified maintenance margin ratio (uniMMR). Users should closely monitor uniMMR to avoid any potential liquidation or losses that may result from the margin ratio change,” the company warned .

The collateral ratio represents the amount of assets needed 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 capital borrowed. A higher ratio provides more security 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 that drove a massive rise in the asset’s price.

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

For the uninitiated, Peanut the Squirrel saw the light of day in early November. It is inspired by a pet squirrel named Peanut, who reportedly bit a Department of Environmental Conservation (DEC) worker during an impound operation and was later euthanized to test for rabies.

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

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

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