Brazilian digital bank Nubank has announced the immediate suspension of trading for its native cryptocurrency, Nucoin. This officially ends operations for the token launched in March 2023.
Nubank informed its customers on Tuesday that the purchase and sale of Nucoin would be permanently halted within 15 days. The bank cited potential market volatility as the reason for the sudden suspension.
Conversion options for Nucoin holders
According to the details shared by the local news media outlet, Nubank is offering a conversion option for customers holding at least 100 Brazilian reais worth of Nucoins.
These users can choose to convert their holdings to either Bitcoin or USDC. The conversion window will be open for 90 days, until December 9th.
“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,” Nubank stated in an email to its customers.
The bank stated that the holders who don’t convert their tokens will see their Nucoin used for the bank’s revamped rewards program.
Nucoin’s blockchain explorer hit half a billion transactions
Nucoin’s blockchain explorer has hit half a billion transactions since its launch. However, despite those decent numbers, Nubank has made its decision to move away from crypto trading.
The bank stated that moving forward, Nucoins will be exclusively used for redeeming benefits within Nubank’s ecosystem. These benefits may include discounts at the bank’s shopping platform and access to exclusive brand experiences.
To minimize the impact of the discontinuation, Nubank has announced 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 campaign’s conclusion.
Nubank had collaborated with Polygon back in 2022. This was for the launch of Nucoin and its loyalty program. The general manager of Nucoin stated at that time that Nucoin is another step in their belief in the potential of blockchain technology.
Nubank is one of the largest digital banking platforms, which is backed by investors like Warren Buffett’s Berkshire Hathaway.
