- 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 considerations, together with rising non-performing loans, prompted the transfer.
In a shocking flip of occasions, Nubank, the distinguished Brazilian fintech firm, has introduced the rapid suspension of buying and selling for its Nucoin cryptocurrency.
This determination, unveiled in a weblog put up on September 10, is meant to defend customers from potential market volatility related to the digital asset.
Nucoin is not going to 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 clients varied perks, akin to reductions and unique advantages.
Nonetheless, as of now, all buying and selling actions associated to Nucoin throughout the Nubank app have been halted. This consists of the suspension of each purchases and gross sales of the token.
For many who at the moment maintain not less than 1,745 Nucoins, there’s nonetheless a chance to redeem their tokens for Bitcoin or USD Coin (USDC) till December 9.
After this deadline, Nucoins will not be tradable however can nonetheless be used to entry in-app advantages and merchandise.
This transfer displays Nubank’s shift in focus from energetic buying and selling to sustaining a steady person expertise inside its platform.
Issues over Nubank’s monetary stability
The abrupt coverage change comes amid rising considerations over Nubank’s monetary stability. Current scrutiny has highlighted rising ranges of non-performing loans throughout 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 yr, analysts have raised considerations concerning 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 atmosphere.
