What is Peanut the Squirrel (PNUT)? Elon Musk’s Latest Meme Coin Controversy

The crypto world has a new, unexpected star: Peanut the Squirrel (PNUT). Within just days of its launch, this Solana-based meme coin skyrocketed to over $150 million in trading volume. 

However, unlike most meme coins, PNUT’s journey to fame wasn’t just about internet trends—it was a response to a viral, emotional story that resonated deeply with the public, especially after Tesla and SpaceX CEO Elon Musk weighed in.

The Viral Story Behind Peanut the Squirrel

Peanut was not your average pet squirrel. With a social media following of over 500,000, he was an adored figure online, bringing joy to many. 

His caretaker, Mark Longo, took to social media to share a heartbreaking experience: New York’s Department of Environmental Conservation (DEC) had seized and euthanized Peanut and another pet, citing rabies concerns. 

This incident quickly caught the internet’s attention, sparking both public outrage and widespread sympathy for Peanut.

The crypto community’s response was swift, with PNUT becoming a symbol of defiance against perceived government overreach. The token’s rapid popularity surge underscored the powerful influence that social media sentiment can have on digital assets.

Elon Musk Joins the Conversation

The story took an even larger turn when Elon Musk, known for his outspoken support of crypto and his influence over meme coins like Dogecoin, publicly criticized the DEC’s decision. 

Musk expressed his frustration, stating, “The government should not be allowed to barge into your house and kill your pet! That’s messed up.” He pinned a tweet referencing PNUT, amplifying attention to the cause. 

As a result, PNUT’s price surged to a peak of $0.14, before stabilizing as early buyers began to cash out.

Musk’s involvement elevated PNUT’s visibility in the crypto market, showing once again how his voice can impact market trends. This association has drawn comparisons to his influence over Dogecoin, where Musk's support led to notable price increases.

A Political Angle and the Election Spotlight

As the U.S. presidential election approaches, Peanut’s story has also gained traction among political figures. During a rally in North Carolina, Senator JD Vance, who is running as Donald Trump’s vice-presidential candidate, cited Peanut’s story as an example of government overreach. 

The event has been used by conservative figures to highlight concerns about state interventions, turning PNUT into an unexpected campaign symbol.

PNUT’s Market Journey

While PNUT experienced an initial surge, it has since stabilized. The coin’s market cap dropped from its $150 million peak to around $49 million, with the token now priced at $0.04, per Gecko Terminal data. 

This leveling off indicates a more cautious approach from traders after the initial emotional reaction.

Despite this, Longo has announced plans to establish a nonprofit in Peanut’s memory, offering supporters a way to continue Peanut’s legacy. The foundation aims to channel donations towards causes that align with Longo's mission and the values that Peanut represented.

The Future of PNUT and Meme Coins in the Crypto Space

PNUT’s meteoric rise reflects the volatility and emotional intensity that define meme coins, with values often driven by pop culture, internet sentiment, and influential voices like Musk’s. 

PNUT’s journey illustrates how quickly trends can shift, especially when underpinned by public sentiment and social media.

As the crypto market evolves, PNUT’s story could set a new precedent for meme coins with a cause, creating both challenges and opportunities for future tokens in this unique space.

FAQ

1. What is PNUT?
PNUT is a meme coin based on Solana, inspired by the story of Peanut the Squirrel, whose tragic story went viral.

2. How did Elon Musk influence PNUT?
Elon Musk’s tweets criticizing the handling of Peanut’s case drew attention to PNUT, driving interest and temporarily boosting its value.

3. Is PNUT connected to the U.S. election?
Yes, Peanut’s story has been highlighted by some conservative figures, including JD Vance, as an example of government overreach.

4. What is PNUT’s current value?
PNUT’s value has stabilized at around $0.04, after initially peaking at $0.14.

5. What’s next for PNUT?
Mark Longo, Peanut’s caretaker, plans to set up a nonprofit in Peanut’s memory, which may help sustain interest in PNUT.