Why is $PNUT the Alpha of this Cycle? | Bull Market Bottom Fishing List

This article was written on November 12, but due to the author's procrastination, it was finally published today with the following changes.

During this Meme cycle, countless people went crazy for memecoins. Yesterday (November 11), Binance listed the spot trading pairs $PNUT and $ACT, which skyrocketed by 330% and 1440% intraday, respectively. $ACT is the premiere AI meme spot, with its big brother $GOAT not receiving the same treatment, only having its contract listed. $PNUT, as a squirrel-type meme, seems similar to other "cat and dog" type meme coins, and its $500 million market cap is even slightly higher than the simultaneously listed $ACT. In most people's eyes, it seems that $ACT offers better value for money than the plain and ordinary little squirrel $PNUT. However, the reality is different.

Origin: The Beginning of the Story

The squirrel image of PNUT originated from a squirrel named "Peanut" adopted by an engineer named Mark seven years ago. Mark often shared interaction videos between himself and Peanut on Instagram and gradually gained hundreds of thousands of fans.

But nearby residents complained to the New York State Department of Environmental Conservation (DEC) that Peanut was carrying a contagious disease. Surprisingly, the DEC broke into Mark Longo's house without a search warrant and took Peanut away. Subsequently, Mark Longo initiated a petition on social media, with tens of thousands of fans signing. Unfortunately, Peanut was eventually euthanized by the DEC.

After Peanut's euthanasia, Dogecoin posted condemning the Democratic Party, and Musk also mourned Pnut in a post, claiming that Trump's inauguration would save Peanut.

This Peanut incident gradually evolved into a denouncement movement against the Democratic Party. At the same time, a large number of Peanut derivatives began to emerge on the internet, such as "squirrels wearing MAGA hats for a rebellion." Since then, the animal image represented by Peanut has not only been a viral meme, but has also begun to be overlaid with a political buff bearing Trump's colors.

The Perfect Political Distance

As the saying goes, "distance makes beauty," and memecoins are no exception. On the day of the U.S. presidential election, Trump initially reached 270 votes to win the election. However, on election day, many Trump-themed coins not only did not rise but instead plummeted. Concept coins like "Trump" and "MAGA" were too close to Trump, lacking native narrative support, and vested interest groups would take advantage of the election to sell off, which is known as "buy the rumor, sell the news." Coins with direct references to "Trump" and "MAGA" became the TOP Losers of the day.

Not only does PNUT have stronger sustainability in its narrative, but PNUT is also the best choice in terms of listing. Due to Binance's unparalleled listing effect, the market is everywhere searching for the next Binance-listed gem. In the concept coin series, centralized exchanges cannot directly list tokens with politically charged tickers like "Trump" or "MAGA," which undoubtedly increases the operational political risk, as no one is willing to increase the risk of U.S. judicial sanctions for a token. PNUT comes with its own political series of traffic and is discreet enough, with a layer of "rice paper" background based on the squirrel meme undoubtedly reducing many uncertainties after listing.

Moreover, Peanut's political distance is just right, embodying both the top-tier internet celebrity meme attributes of a regular zoo meme coin (such as MOODENG) and the political concepts endorsed by Musk and Trump, with a wide popular base and political buff. PNUT cleverly stands at the balance point between traffic and political narrative. It's both the right time and the right momentum.

Musk's Product Endorsement List: Symbol of Democratic Spirit

PNUT's buff is not just that; more importantly, PNUT stands at the center of this round's biggest product endorsement king, Musk's traffic. Smart reader friends may have already noticed that all assets related to Musk have far outperformed the overall cryptocurrency market performance, even the token named MUSK has seen an uptrend. The "MUSK Trade" has become the undeniable α of this cycle.

DOGE

DOGE, as the largest market cap meme coin, is considered by most investors to have an overinflated market cap, with less cost-effectiveness compared to other "small cap" meme coins. However, in the past 14 days, DOGE has achieved a 120% increase, with a 96% increase in 7 days. DOGE's outstanding performance is attributed, on the one hand, to Musk's full support for Trump in the election, with the market generally believing that a Trump victory is a huge positive for Musk-related concepts. On the other hand, it is due to the potential benefits of Musk applying Dogecoin to the payment system. At the same time, it is noteworthy that on November 3rd, Robinhood Crypto has supported DOGE token transfers and deposits.

D.O.G.E

D.O.G.E is a meme coin named after the Department of Government Efficiency on Ethereum and Musk's tenure, which surged after Trump released Musk's appointment statement. Numerous meme coins with the same ticker as DOGE have also seen a general uptrend. For more information on DOGE, you can refer to the author's previous article "How did a $50 billion Dogecoin bring Musk into the U.S. government department?."

BAN

In 2019, Italian artist Maurizio Cattelan created the artwork "Comedian," which featured a banana duct-taped to a wall. The piece was sold at Sotheby's for $120,000, earning the title of the "most expensive fruit" in history.

After experiencing sharp ups and downs, on November 18th, Musk retweeted a photo of a giant Banana sculpture next to a SpaceX Starship, posted by Polaris's content director. Additionally, due to the listing of the BAN contract on Binance, BAN's market capitalization has surpassed $300 million.

PNUT

PNUT still carries on the legacy of MUSK Trade. There is often a sentiment in the market that "Squirrel is just a tool used by the Red Party to attack the Blue Party, and PNUT will come to an end after the election." However, this is not the case. Not only does Musk himself often mourn the deceased squirrel Peanut on Twitter, but other celebrities outside the circle also frequently mention the squirrel. For example, Supreme Court Justice Neil Gorsuch cited the "peanut squirrel" case as a typical example of government overreach, and UFC boxer Jim Miller fought for justice for the little squirrel Peanut after winning a match.

PNUT has long moved away from being a "tool against the Democratic Party" and has instead evolved into a spiritual totem that "supports democracy and opposes dictatorship." More importantly, the squirrel Peanut has already sacrificed itself, allowing people to fabricate stories about Peanut and imbue it with more spiritual meaning, even continuously "deifying" it.

Comparison with Other Memecoins

Zoo Series

Let's take the recently popular Zoo Series dog type as representative of NEIRO and the hippo series as representative of MOODENG.

NEIRO is a new Shiba Inu coin announced by the Dogecoin owner, which underwent a case conflict and a CTO at the beginning of its launch but successfully rebirthed after a near-death experience. MOODENG, the Bouncing Hippo, is a popular hippo in a Thai zoo, enjoying significant traffic advantages in Web2. In terms of community consensus, PNUT does not have the strong community support that Neiro has; in terms of traffic, Moodeng far surpasses the squirrel's popularity in Web2 circles. However, as strong as Moodeng is, it has not yet exceeded a $6 billion market cap, while Neiro still hovers around an $8 billion market cap.

PNUT not only has a million-level dissemination power similar to other animal image memes, but also has a unique political buff and extremely strong outbreak power. PNUT quickly rose by 500% the day after its listing, achieving a trading volume of 2 billion USD within a day. Its ability to rapidly attract funds and create market FOMO is unparalleled by other memecoins.

In summary, PNUT not only possesses the disseminative power of other animal image memes but also has a unique political buff. While PNUT is not a top-tier IP, it is definitely a hexagonal warrior.

Political Icon

In the political arena, PNUT's direct competitor is the "Eagle." Polymarket founder Shayne Coplan was arrested for involvement in "manipulating election results," leading to the emergence of the "Eagle" icon memecoin through the Free Shayne Coplan movement. Free Shayne Coplan is considered a tool to combat the injustice against the Democratic Party. Additionally, due to its ticker being a unique representation of the American image as an eagle, it received significant market hype on the day of its launch.

Largely, the appearance of the "Eagle" narrative reflects dissatisfaction with the Democratic Party's political retaliation. If there were no subsequent events following Shayne Coplan's incident, then the "Eagle" would gradually be forgotten by the market. This is also why there is the eerie phenomenon of "many speculators hoping for its euthanasia." In contrast, PNUT has a stronger shaping and leadership effect in its political attributes compared to the Eagle.

AI Memecoin

ACT, Aii6z, and GOAT are AI meme projects that the market is focusing on. However, the overall logic of AI memecoins differs from that of PNUT. For these memecoins, the essence is to capture the traffic of established AI projects such as WLD and LPT. While at a macro level PNUT and AI memecoins are in a zero-sum game, at a detailed meme track level, they are in parallel competitive relationships.

Conclusion

PNUT's core competitive advantages lie in (1) a perfect animal IP, being a viral animal with a unique squirrel image; (2) excellent traffic center, having both in-circuit and web2 traffic; (3) delicate political distance, having political endorsement while still being exchangeable; (4) being part of Musk's endorsement list, becoming a core part of this round of Musk's endorsements; (5) proven super outbreak potential, rising fivefold in a day, and breaking through the 2 billion marks; (6) most importantly, Peanut has sacrificed, allowing the market to bestow it with greater meaning and make it easier to "deify."

PNUT has emerged as the ultimate meme coin of this cycle. If you have found a project that has a higher ceiling than a squirrel and more buff than a squirrel, first of all, congratulations are in order! Secondly, please quietly tell me~