- Nubank has announced the closure of its cryptocurrency, Nucoin
- The company immediately halted trading to prevent its customers from “possible volatility”
- Users have until December 9th to convert their Nucoins into Bitcoin or USDC
Nubank has immediately halted trading of its Nucoin cryptocurrency and has told customers to convert it to another cryptocurrency. The Brazilian tech-focused bank decided to halt trading to protect customers from “possible volatility” in the price following its decision to end support for the coins, with full suspension of trading set for the end of the month. Nubank launched its Nucoin in March 2023 and stated that scrapping the coin is part of a rewards overhaul.
“Revolution” Lasts 18 Months
When Nubank launched Nucoin, it pitched it as a “revolution” in the field of loyalty services, with customers encouraged to “freeze” their Nucoins to level up and unlock further benefits, such as coin-back rewards and lottery tickets. Alternatively, holders could sell those Nucoins to other customers in exchange for cash.
18 months after their launch, Nucoins will now be repurposed solely for redeeming benefits such as discounts and brand-specific experiences. Nubank has framed this change as part of a broader reformulation of its rewards program, saying, “Nucoins will now be used exclusively to redeem benefits in a variety of products and activities offered by Nubank.” Future rewards to be detailed later.
Customers holding at least R$100 in Nucoins will have the option to convert their tokens to Bitcoin or USDC, with a final deadline of December 9th for making this conversion.
Trading Halted for Customers “Protection”
In a communication to users, Nubank explained that its decision to halt trading at the same time as announcing the scrapping of the currency scheme was 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.”
To further incentivize participation in the new scheme, the bank will distribute prizes to its 16 million Nucoin holders. Monthly rewards include 30 prizes of R$1,000, one prize of R$100,000, and a grand prize of R$1 million at the campaign’s conclusion.
Nubank has been chosen as a participant in Brazil’s Central Bank Digital Currency, along with 13 other entities.
