Brazil’s leading digital bank, Nubank, has officially discontinued operations related to its native cryptocurrency, Nucoin, effective Tuesday. This decision includes the suspension of both buying and selling options for the token.
Grace Period for Users
According to reports, Nubank is offering a 15-day grace period for users to wrap up any pending transactions involving Nucoin. Customers who hold at least R$100 worth of Nucoins will have the opportunity to convert their holdings into Bitcoin or USDC. This conversion must be completed within a specified timeframe to ensure a smooth transition for users.
Background on Nucoin
Nubank initially launched Nucoin in March 2023 in partnership with Polygon, aiming to harness the advantages of Web3 technology. The token was integrated into a customer rewards program, designed to provide users with benefits such as discounts and other perks as they accumulated Nucoins. This initiative was part of the bank’s broader strategy to engage users through digital assets.
Reasons for Discontinuation
The decision to halt Nucoin operations was communicated to customers through an email, which cited market volatility as the primary reason for stopping trading activities. Nubank stated, “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.” This measure aims to safeguard customers against unpredictable price fluctuations in the cryptocurrency market.
Conversion Options and Timeline
For token holders, the bank has specified that users with at least R$100 ($17.60) worth of Nucoins will have a window of up to 90 days to convert their tokens. The deadline for this conversion is set for December 9th. If customers do not complete the conversion process by this date, their Nucoins will still be retained, allowing for future participation in Nubank’s rewards program.
Future of Nucoin
After the cessation of trading, Nubank has indicated that Nucoins will still hold value and can be utilized to obtain various benefits in the future. The rewards program will include discounts at Nubank’s partnered offerings, access to exclusive brand experiences, and other advantages. Detailed communication about these benefits will be provided to customers through Nubank’s regular channels.
Conclusion: A Strategic Restructuring Move
This decision to discontinue Nucoin operations is part of Nubank’s larger restructuring strategy. The digital bank remains committed to seeking innovative ways to enhance customer experience while maintaining a cautious approach to market volatility. Nubank’s journey into the cryptocurrency space, which began with Bitcoin investments in mid-2022, illustrates its evolving stance on digital assets and customer engagement.