- 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 shocking flip of occasions, Nubank, the outstanding Brazilian fintech firm, has introduced the speedy suspension of buying and selling for its Nucoin cryptocurrency.
This determination, unveiled in a weblog submit 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, identified for its revolutionary digital banking providers, 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, reminiscent of 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 a minimum of 1,745 Nucoins, there may be nonetheless a possibility 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 lively buying and selling to sustaining a steady consumer expertise inside its platform.
Considerations 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 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 12 months, analysts have raised issues concerning the financial institution’s valuation, contemplating it probably 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.