Brazilian Nubank has abruptly halted trading of its Nucoin cryptocurrency, citing a need to protect users from potential market volatility.
Digital fintech Nubank is closing its cryptocurrency, suspending immediately all trading within its app.
In a Sept. 10 blog post, Nubank said it has decided to cease its purchase and sale of its cryptocurrency to “prevent market volatility,” adding that those holding at least 1,745 Nucoins can be redeemed the token for Bitcoin (BTC) or USD Coin (USDC) until Dec. 9. Those 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.”
Nubank
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, with concerns about rising non-performing loans and asset quality. 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,” per a Bloomberg report.
