Nubank abruptly halts buying and selling of its Nucoin cryptocurrency

• Nubank halts Nucoin buying and selling to guard customers from market volatility.
• Nucoin tokens could be redeemed for Bitcoin or USDC till December 9.
• Monetary issues, together with rising non-performing loans, prompted the transfer.

In a stunning flip of occasions, Nubank, the distinguished Brazilian fintech firm, has introduced the fast suspension of buying and selling for its Nucoin cryptocurrency.

This choice, unveiled in a weblog submit on September 10, is meant to defend customers from potential market volatility related to the digital asset.

Nucoin is not going to be tradable after redeeming deadline

Nubank, identified for its progressive 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 prospects numerous perks, reminiscent of reductions and unique advantages.

Nevertheless, as of now, all buying and selling actions associated to Nucoin inside the Nubank app have been halted. This consists of the suspension of each purchases and gross sales of the token.

For individuals 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 energetic buying and selling to sustaining a secure person 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 inside 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 yr, analysts have raised issues in regards to 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.