- Nubank halts Nucoin trading to protect users from market volatility.
- Nucoin tokens can be redeemed for Bitcoin or USDC until December 9.
- Financial concerns, including rising non-performing loans, prompted the move.
In a surprising turn of events, Nubank, the prominent Brazilian fintech company, has announced the immediate suspension of trading for its Nucoin cryptocurrency.
This decision, unveiled in a blog post on September 10, is intended to shield users from potential market volatility associated with the digital asset.
Nucoin will not be tradable after redeeming deadline
Nubank, known for its innovative digital banking services, introduced Nucoin in late 2022 on the Polygon blockchain following a partnership between Nubank and Polygon. The cryptocurrency was part of a rewards program designed to offer customers various perks, such as discounts and exclusive benefits.
However, as of now, all trading activities related to Nucoin within the Nubank app have been halted. This includes the suspension of both purchases and sales of the token.
For those who currently hold at least 1,745 Nucoins, there is still an opportunity to redeem their tokens for Bitcoin or USD Coin (USDC) until December 9.
After this deadline, Nucoins will no longer be tradable but can still be used to access in-app benefits and products.
This move reflects Nubank’s shift in focus from active trading to maintaining a stable user experience within its platform.
Concerns over Nubank’s financial stability
The abrupt policy change comes amid growing concerns over Nubank’s financial stability. Recent scrutiny has highlighted rising levels of non-performing loans within the bank’s portfolio, which have reached levels above industry norms.
Despite a notable surge of over 60% in Nubank’s stock this year, analysts have raised concerns about the bank’s valuation, considering it potentially overvalued.
While the exact reasons for the sudden suspension of Nucoin trading remain unclear, it is evident that Nubank aims to mitigate any further financial risks and stabilize its operations amidst a challenging economic environment.