Nubank has suspended trading of its own token Nucoin
In one year, the value of the asset dropped by 97%
11.09.2024 - 14:40
176
2 min
0
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.
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.
Useful material?
Market
Due to supply shortages, the asset’s pre-market exchange rate was climbing above $1000
Dec 16, 2024
Incidents
Reports about the hacking of the exchange with calls to withdraw assets began to spread on December 13
Dec 13, 2024
Crypto regulations
Stablecoins from issuer Circle will not be affected by the changes
Dec 12, 2024
Crypto regulations
The platform will launch after meeting the preconditions of the local exchange authority
Dec 9, 2024
Market
The $1,1 billion figure was reached after the bitcoin correction
Dec 6, 2024
Crypto regulations
By early January, all open positions and loans of local users will be closed and repaid automatically
Dec 5, 2024