- Nubank suspends Nucoin buying and selling to guard customers from market fluctuations.
- Nucoin tokens may be exchanged for Bitcoin or USDC till December ninth.
- The transfer was prompted by monetary considerations, together with rising dangerous loans.
In a stunning flip of occasions, Nubank, a number one Brazilian fintech firm, has introduced the fast suspension of buying and selling of its cryptocurrency, Nucoin.
The choice, revealed in a weblog submit on September 10, is supposed to guard customers from potential market volatility related to the digital asset.
Nucoin won’t be tradable after the redemption interval
Nubank, identified for its revolutionary digital banking companies, launched Nucoin on the Polygon blockchain in late 2022 following a partnership between Nubank and Polygon. The cryptocurrency was a part of a rewards program that was meant to supply prospects varied advantages equivalent to reductions and unique advantages.
Nevertheless, as of now, all buying and selling actions associated to Nucoin throughout the Nubank app have been stopped. This consists of suspending each purchases and gross sales of the token.
For many who at the moment maintain not less than 1,745 nucoins, there’s nonetheless an choice to alternate their tokens for Bitcoin or USD Coin (USDC) till December ninth.
After this date, nucoins will not be tradable, however can nonetheless be used to entry in-app advantages and merchandise.
The transfer displays Nubank's shift in focus from lively buying and selling to sustaining a steady person expertise inside its platform.
Issues concerning the monetary stability of Nubank
The sudden coverage change comes amid rising considerations about Nubank's monetary stability. A latest evaluation pointed to rising ranges of non-performing loans within the financial institution's portfolio, reaching ranges above trade norms.
Regardless of a big rise of greater than 60% in Nubank shares this yr, analysts have expressed concern concerning the financial institution's valuation, seeing it as probably overvalued.
Whereas the precise causes for the sudden suspension of Nucoin buying and selling stay unclear, it’s clear that Nubank goals to mitigate any additional monetary dangers and stabilize its operations in a difficult financial atmosphere.
