The internet stopped this weekend with the story of Peanut, the squirrel, seized and killed by the New York City. As commotion took over, memecoin traders jumped into the trend with the Solana-based token Peanut the Squirrel (Pnut).
In particular, a trader turned a $44,800 Pnut purchase into a $1.4 million sale, profiting $1.3 million. Finbold retrieved data from dexscreener on November 3, spotting this accomplishment.
The trader, under the address ‘GmM…9vB’, bought 30 million Pnut for an average of $0.0015 in 10 transactions. So far, the address has sold 25.9 million Pnut at an average price of $0.054 in 39 transactions.
As of this writing, ‘Peanut the Squirrel’ trades at $0.095 with a $96.8 million market cap. Interestingly, DLNews reported that Pnut surpassed a $120 million capitalization before retracing below the $100 million market cap level.
Liquidity concerns while trading memecoins like Pnut
It is worth noting that Pnut has a $2.3 million liquidity, only nearly two times what ‘GmM…9vB’ sold. This is the reality of most memecoins, which can prevent traders from fully realizing their gains without nuking the price.
Furthermore, the memecoin trading scene is knowingly full of insider traders and rug pulls built to extract liquidity from retail. On that note, Finbold reported some signals that memecoin traders should watch to prevent buying into an insider’s rug pull.
Yet, most memecoin speculation will eventually display characteristics of “the greater fool theory,” created to describe financial bubbles. These tokens usually benefit from hype and buzz to attract fresh liquidity through new buyers jumping in the expectation that others like them will surge later to pay a higher price for their memecoin.
While most public stories tell a winning tale of traders who profited millions of dollars trading memecoins, most speculators will naturally experience drastic losses.
Who is Peanut the Squirrel?
Peanut the Squirrel, a beloved internet celebrity, was seized and euthanized by New York State authorities, sparking widespread outrage. According to reports, Peanut was taken from Mark Longo’s home in Pine City, New York, on October 30, 2024, along with a rescued raccoon named Fred.
The Department of Environmental Conservation (DEC) launched an investigation following complaints about potentially unsafe housing of wildlife. Consequently, at least six officers from the DEC arrived at Longo’s home, seizing both Peanut and Fred.
Longo criticized the DEC for its heavy-handed approach, lack of regard for the animal’s safety, and his efforts to get Peanut certified as an educational animal. In response, the DEC stated that the animals were euthanized, citing concerns about public health related to the illegal possession of wild animals that could carry the rabies virus.
The incident has sparked a social media firestorm, with many fans expressing outrage and demanding changes in wildlife policies. Notably, Elon Musk and other public figures have weighed in, criticizing the government’s actions.
The government should not be allowed to barge into your house and kill your pet! That’s messed up.
Even if it is illegal to have a pet squirrel (which it shouldn’t be), why kill PNut instead of simply releasing him into the forest!? https://t.co/2m9Gi5QpUT
— Elon Musk (@elonmusk) November 3, 2024
Meanwhile, Longo has vowed to continue his mission, announcing plans to set up a fundraiser in Peanut’s memory and seeking legal action against the state.
Featured image:
Tony Quinn – “A Gray Squirrel comes to the backyard deck and finds a peanut.” Digital Image. Shutterstock.
