Latin America’s Nubank sunsets trading of its Nucoin crypto

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As a seasoned researcher who has witnessed numerous shifts and transformations in the dynamic world of fintech, I find Nubank’s decision to suspend trading of its Nucoin cryptocurrency intriguing, if not a tad unexpected. The move comes at a time when the crypto market is experiencing significant volatility, and it seems like Nubank is taking a proactive approach to protect its users from potential risks.

In simpler terms, Nubank, a Brazilian financial institution, has temporarily stopped the exchange of its digital currency, Nucoin. This move was made to shield their users from possible fluctuations in the crypto market.

Financial technology company Nubank is halting its cryptocurrency operations, effectively stopping all trades within their application, with immediate effect.

On September 10th, Nubank announced that they are stopping their exchange of cryptocurrency to minimize market fluctuations. They also mentioned that Nucoin holders with at least 1,745 coins can swap their tokens for Bitcoin (BTC) or USD Coin (USDC) until December 9th. Those who do not redeem their tokens by this date will still be able to utilize them for various in-app perks.

Effective immediately, you can no longer purchase or exchange Nucoins through our application. The trading feature has been discontinued, but you can still use your Nucoins to obtain rewards and goods within the app.

Nubank

In the latter half of 2022, Nucoin debuted on the Polygon network (POL), being introduced as an incentive scheme offering clients a range of advantages such as reduced prices and exclusive privileges.

It appears that Nubank has made an unexpected change in policy, and there seems to be speculation about the reasons behind this move. This shift occurs as Nubank faces growing criticism regarding its financial stability, with worries about elevated non-performing loans and questionable asset quality. As per Bloomberg, the bank’s problematic loans have exceeded industry averages, and although the bank’s stock has jumped more than 60% this year, some experts view it as overpriced according to a Bloomberg report.

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2024-09-11 11:26