Scarlet Watermelon Seed

All mobs that are of a level to give you XP (green or better) have a chance to drop this item during the annual Watermelon Event.
You need to collect at least before you can turn them in for a watermelon and at least .
Note that these are NOT Bound so you can use any or all of your alts to farm them, then mail them all to one character to concentrate the haul.