Brazil’s digital bank Nubank has closed its native token Nucoin operations on Tuesday, including its purchase and sale options.
Per a local report, the bank has given 15 days grace period to terminate Nucoin buy and sell services. “Customers with at least R$100 in Nucoins will be able to convert them to Bitcoin or USDC.”
Nubank collaborated with Polygon to launch its native crypto token Nucoin in March 2023, to leverage the democratizing power of Web3. The token was a part of a new customer rewards program, with a goal to offer customers benefits such as discounts and perks as they accumulate its Nucoins.
In an email sent to customers, Nubank cited market volatility of the token as the reason for suspension.
“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.”
Further, Nucoin users having at least R$100 ($17.6) worth tokens, will be able to convert them to Bitcoin or USDC. “Users will have up to 90 days to make this conversion, that is, until December 9th,” the mail read.
However, if user fails to convert within deadline, the cryptos will be accumulated for “future benefit from the rewards program”.
Nubank first began its crypto pivot in mid-2022, when it announced it would buy Bitcoin using its balance sheet.
Besides, after termination, Nucoins will be used to “redeem benefits in a variety of products and activities offered by Nubank.” These include discounts at Shopping do Nu, advantages to access brand experiences, and more, the release read.
The bank would send more information about the benefits, to customers via communication channels.
According to the Nubank, the Nucoin termination is a part of its planned restructuring process.
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