Starting December 17, Binance is set to raise collateral ratios for six altcoins in its Portfolio Margin offering. Notably, the squirrel-themed meme coin PNUT, which gained notoriety with backing from figures like Elon Musk, is included in these changes.
The world's leading cryptocurrency exchange, Binance, will initiate updates to collateral ratios for several altcoins on December 17. This change, expected to be executed within an hour, will impact Peanut the Squirrel (PNUT), 1MBABYDOGE, Eigenlayer (EIGEN), Reserve Rights (RSR), Movement (MOVE), and Magic Eden (ME). Each token will see a 10% increase in its collateral ratio. Specifically, PNUT's collateral will rise from 35% to 45%, while the others will see an increase from 10% to 20%.
In a notice to its users, Binance emphasized the importance of monitoring the Unified Maintenance Margin Ratio (uniMMR) to prevent potential liquidation or losses due to the adjustment in collateral ratios. The collateral ratio signifies the asset quantity needed to secure a loan or maintain an open position. It is calculated as a percentage, comparing collateral value to borrowed capital. Higher ratios offer lenders more reassurance, enhancing recovery prospects even during market downturns.
Initially listed by Binance in mid-November with a seed tag, the squirrel-themed meme coin PNUT witnessed a substantial value surge. This rise in price was partly due to the exchange's support. Subsequently, trading pairs PNUT/BRL and PNUT/EUR were introduced to the Binance Spot program, further bolstering the coin's liquidity.
For those unfamiliar, Peanut the Squirrel emerged in early November, drawing inspiration from an incident involving a pet squirrel named Peanut.
The squirrel reportedly bit a Department of Environmental Conservation worker during a seizure operation and was subsequently euthanized for rabies testing. The event caused widespread controversy, as Peanut had no apparent illness from living indoors for years. Elon Musk criticized the state intervention, labeling it "government overreach" and insisting, "Donald Trump would save the squirrels."
The ensuing interest in PNUT contributed to its substantial price increase, profiting early investors handsomely. One trader remarkably turned a modest $17 investment into over $3 million through precise trading strategies. For an in-depth look at this unique trading success, view our detailed analysis in the video below.