- Nubank halts Nucoin buying and selling to guard customers from market volatility.
- Nucoin tokens will be redeemed for Bitcoin or USDC till December 9.
- Monetary issues, together with rising non-performing loans, prompted the transfer.
In a stunning flip of occasions, Nubank, the outstanding Brazilian fintech firm, has introduced the speedy suspension of buying and selling for its Nucoin cryptocurrency.
This choice, unveiled in a weblog put up on September 10, is meant to protect customers from potential market volatility related to the digital asset.
Nucoin won’t be tradable after redeeming deadline
Nubank, recognized for its progressive digital banking companies, launched Nucoin in late 2022 on the Polygon blockchain following a partnership between Nubank and Polygon. The cryptocurrency was a part of a rewards program designed to supply prospects numerous perks, similar to reductions and unique advantages.
Nevertheless, as of now, all buying and selling actions associated to Nucoin inside the Nubank app have been halted. This consists of the suspension of each purchases and gross sales of the token.
For many who presently maintain at the very least 1,745 Nucoins, there’s nonetheless a possibility to redeem their tokens for Bitcoin or USD Coin (USDC) till December 9.
After this deadline, Nucoins will now not be tradable however can nonetheless be used to entry in-app advantages and merchandise.
This transfer displays Nubank’s shift in focus from lively buying and selling to sustaining a steady consumer expertise inside its platform.
Issues over Nubank’s monetary stability
The abrupt coverage change comes amid rising issues over Nubank’s monetary stability. Latest scrutiny has highlighted rising ranges of non-performing loans inside the financial institution’s portfolio, which have reached ranges above business norms.
Regardless of a notable surge of over 60% in Nubank’s inventory this 12 months, analysts have raised issues in regards to the financial institution’s valuation, contemplating it doubtlessly overvalued.
Whereas the precise causes for the sudden suspension of Nucoin buying and selling stay unclear, it’s evident that Nubank goals to mitigate any additional monetary dangers and stabilize its operations amidst a difficult financial surroundings.