Key Takeaways
- Customers holding at least 1,745 Nucoins have the option to redeem their tokens for Bitcoin or USD Coin until December 9.
- After the deadline, unredeemed Nucoins will remain usable for various in-app benefits.
Brazil’s largest crypto bank, Nubank, has announced the immediate suspension of trading for its native cryptocurrency, Nucoin. The decision follows a sharp decline in the token’s value, which has fell over 97% in the past year. The suspension, effective immediately, aims to shield users from potential market instability, the bank said in an email sent to its customers on September 10.
Nucoin, launched on October 19, 2022, on the Polygon blockchain, was developed in collaboration with Polygon Labs. It was distributed to Nubank’s 70 million customers as an airdrop. The token was intended to represent the bank’s foray into the world of blockchain and digital assets, but market volatility has forced a change in direction.
“To protect you and all participants from potential volatility in the market value of Nucoins due to reactions to this update, we have chosen to suspend your trading immediately,” the email reads
Customers holding at least 1,745 Nucoins have the option to redeem their tokens for Bitcoin (BTC) or USD Coin (USDC) until December 9. Any remaining Nucoins after that date will no longer be tradable but can still be used within Nubank’s platform for various in-app benefits, such as discounts on the bank’s shopping platform and access to exclusive brand experiences.
As per CoinMarketCap, the token was last traded at $0.0158, a steep decline from its all-time high of $0.59, recorded on April 22. As a result, Nubank has allowed users with at least R$100 worth of Nucoins to convert their holdings into BTC or USDC by the December deadline. The bank has also introduced a 15-day window for users to halt all buying and selling activities, with final trading set to close on September 25.
In addition to suspending Nucoin trading, Nubank has faced scrutiny over its financial health. Concerns have been raised about its portfolio of non-performing loans, which some analysts say exceed industry norms. Despite this, the bank’s stock has risen over 60% this year, although some believe it remains overvalued.
As per its financial reports, Nubank added 5.2 million new customers in Q2 2024, bringing its global customer base to 104.5 million as of June 30, 2024, representing a 25% year-over-year increase
