On Tuesday, Nubank, a digital bank in Brazil, discontinued its operations concerning the native token Nucoin, which included purchase and sale options.
According to a local report, according to a regional report, the bank has granted a 15-day grace period to terminate Nucoin’s purchase and sale of services. “Customers who possess a minimum of R$100 in Nucoins can convert them into USDC or Bitcoin.”
Nubank launched its native crypto token, Nucoin, in March 2023 in collaboration with Polygon to capitalize on the democratizing potential of Web3.
The token was a component of a new customer rewards program that aimed to provide customers with advantages, such as discounts and perks, as they accumulated Nucoins.
Nubank’s communication to customers attributed the suspension to the token’s market volatility.
“To safeguard you and all participants from potential volatility in the market value of Nucoins as a result of potential reactions to this update, we have elected to suspend your trading immediately.”
Nucoin users with tokens valued at a minimum of R$100 ($17.6) can convert them to USDC or Bitcoin. The email stated that users would have a maximum of 90 days to complete the conversion, equivalent to December 9th.
Nevertheless, the cryptos will be accumulated for “future benefit from the rewards program” if the user fails to convert within the deadline.
Nubank initiated its crypto pivot in mid-2022 by declaring it would acquire Bitcoin through its balance sheet.
Additionally, Nucoins will be utilized to “redeem benefits in various products and activities offered by Nubank” following termination. The release includes discounts at Shopping do Nu, advantages to access brand experiences, and more.
The bank would provide consumers with additional information regarding the benefits through various communication channels.
The Nubank has planned the termination of Nucoin as part of its restructuring procedure.
