Originally published on: September 11, 2024
In a surprising move, Nubank, a major crypto bank in Latin America supported by Warren Buffet’s Berkshire Hathaway, has decided to halt trading for its native cryptocurrency, Nucoin. The token has seen a staggering 97% decrease in price over the past year, prompting the bank to take action.
The Nucoin token was first introduced on the Polygon blockchain on Oct. 19, 2022. Fast forward almost two years later, and Nubank has now made the decision to suspend trading. Customers who hold at least 10 reals in Nucoins (NUC) are being offered the option to convert their tokens to Bitcoin or stablecoin USDC by Dec. 9.
If customers choose not to convert, their cryptocurrencies will be retained for future benefits in the rewards program, as reported by Cointelegraph Brazil. Nubank cited the need to protect customers from potential market volatility as the reason for the immediate suspension of trading.
According to data from CoinMarketCap, Nucoin’s last traded price was $0.0158, representing a drastic decline from its all-time high of $0.59 on April 22. With the cryptocurrency landscape evolving rapidly, Nubank’s decision reflects the challenges and opportunities in this space.
Nubank entered the cryptocurrency scene in May 2022 and has since expanded to offer a range of digital assets, in addition to Nucoin, to its customers. As of July this year, the bank boasted 100 million customers across Brazil, Mexico, and Colombia, underlining its growing presence in the region.
While Argentina has been a key player in driving cryptocurrency adoption in the Western Hemisphere, challenges persist in fostering financial inclusion. However, with the rise of fintech firms like Nubank, there is a potential revolution in reshaping the traditional banking landscape in Latin America and beyond.
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