Brazilian digital bank Nubank announced that it will stop trading its native cryptocurrency, Nucoin.
This decision effectively ends the operations of the token, which was launched in March 2023.
Immediate suspension, conversion to Bitcoin
Nubank informed its customers that buying and selling of Nucoin will be permanently halted within 15 days.
The bank cited concerns about potential market volatility as the main reason for the suspension.
To assist customers holding Nucoin, Nubank is providing a conversion option for those with at least 100 Brazilian reais worth of the tokens, and these customers can choose to convert their Nucoins into either Bitcoin or USDC.
The conversion period will last for 90 days, ending on December 9. Customers who don’t convert their tokens will have their Nucoin used for the bank’s updated rewards program.
“To protect you and all participants from potential volatility in the market value of Nucoins due to potential reactions to this update, we have chosen to suspend your trading immediately.”
Nucoin’s milestones and what’s next?
The network reached a huge milestone of half a billion transactions since its launch, but Nubank decided to move away from crypto trading.
The bank stated that after this change, Nucoins will only be used for redeeming various benefits and bonuses within Nubank’s ecosystem.
These benefits may include discounts on the bank’s shopping platform and access to exclusive brand experiences, but more details weren’t shared.
To lessen the impact of stopping Nucoin, the bank also launched a prize campaign for its 16 million Nucoin holders.
The promotion includes 30 monthly prizes of 1,000 Brazilian reais, a monthly prize of 100,000 reais, and a grand prize of 1 million reais at the end of the campaign.
Promising start
Nubank previously partnered with Polygon in 2022 to launch Nucoin and its loyalty program.
At that time, the general manager of Nucoin expressed confidence in the potential of blockchain technology.
The reason why this move made headlines back in the day is because as one of the largest digital banking platforms, Nubank is supported by investors like Warren Buffett’s Berkshire Hathaway. And Warren Buffett is well-known crypto-critics.
