Nubank has suspended trading of its own token Nucoin

What’s new? Brazil’s Nubank, one of Latin America’s leading crypto banks backed by Warren Buffett’s Berkshire Hathaway, suspended trading of its own token Nucoin (NUC) on September 10, the value of which has fallen by more than 97% over the past year. The coin was launched on the Polygon Layer 2 (L2) network on the Ethereum blockchain on October 19, 2022.

Press release

What else is known? Customers who own at least 100 Brazilian reals worth of NUC can convert the coins into bitcoins or USDC stablecoins from issuer Circle until December 9. If the user does not perform the conversion, the cryptocurrencies will be kept for accumulation and “future benefit from the rewards program”.

In an email to customers, Nubank management explained its decision as follows:

“To protect you and all participants from potential volatility in the market value of Nucoins due to potential reactions to this update, we have chosen to suspend your trading immediately.”

At the time of writing, the asset is trading at $0,0158, having lost 54% in 24 hours. Its capitalization stands at $14,8 million. In addition to Nubank itself, trading of the asset remains available on the Coinstore platform.

Digital bank Nubank launched cryptocurrency services in May 2022. At the same time it announced the allocation of 1% of its net assets in bitcoin, and also began a partnership with US-based stablecoin issuer Paxos, allowing the latter’s customers to conduct cryptocurrency transactions directly through Nubank. By November last year, the bank was offering trading in 14 cryptocurrencies besides Nucoin.

In July this year, Nubank said the number of customers in Brazil, Mexico, and Colombia had surpassed the 100 million mark.

In August, Brazil’s securities regulator allowed two exchange-traded funds (ETFs) based on the native token of the Solana (SOL) blockchain to trade on the local leading stock exchange B3. At the same time, B3 launched trading in shares of the largest spot BTC ETF from the investment company BlackRock.