Latin America’s Nubank sunsets trading of its Nucoin crypto

Brazilian Nubank has abruptly halted trading of the Nucoin cryptocurrency, citing the need to protect users from potential market volatility.

Digital fintech company Nubank is shutting down its cryptocurrency exchange and immediately suspending all transactions made through its app.

Nubank said in a blog post on September 10 that it had decided to halt trading of the cryptocurrency to “prevent market volatility,” adding that those holding at least 1,745 Nucoins will be able to exchange their tokens for Bitcoin (BTC) or USD Coin (USDC) until December 9. Those who do not exchange their tokens by this deadline will still be able to use them for various in-app benefits.

“Going forward, the ability to buy and sell Nucoins within the app will no longer be available. Trading has been suspended and Nucoins will only be used to redeem perks and products within the app.”

Nubank

Nucoin was launched on Polygon (POL) in late 2022 as part of a rewards program that aims to offer customers a variety of benefits, including discounts and exclusive perks.

While the exact reason behind the move remains unclear, the sudden policy change comes amid growing scrutiny of Nubank’s financial health and concerns about rising bad loans and asset quality. According to Bloomberg, the bank’s problem loan portfolio has reached levels “above industry norms,” and while the stock has risen over 60% this year, some analysts consider it “overvalued,” according to the Bloomberg report.