Brazilian Nubank has abruptly halted trading of its Nucoin cryptocurrency, citing a need to protect users from potential market volatility.
Reasons for Halting Trade
In a Sept. 10 blog post, Nubank said it has decided to cease its purchase and sale of its cryptocurrency to “prevent market volatility.” Those holding at least 1,745 Nucoins can redeem the token for Bitcoin (BTC) or USD Coin (USDC) until Dec. 9.
Consequences for Nucoin Holders
Users who do not redeem their tokens by this deadline will still be able to use them for various in-app benefits. From now on, the ability to buy and sell Nucoins within the app will no longer be available. Trading has been suspended, and Nucoins will only be used for redeeming benefits and products within the app.
Context and Reactions
Nucoin was launched on Polygon (POL) in late 2022 as part of a reward program intended to offer customers various perks, including discounts and special benefits. While the exact reason behind the move remains unclear, the sudden policy shift comes amid increasing scrutiny over Nubank’s financial health. According to Bloomberg, the bank’s portfolio of troubled loans has reached levels “above industry norms,” and while its stock has surged by over 60% this year, some analysts consider it “overvalued.”
Nubank's abrupt decision to halt Nucoin trading has raised questions about the reasons and future plans, especially amid the current financial instability.
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