Nubank, the prominent Latin American crypto bank backed by Warren Buffet’s Berkshire Hathaway, announced a sudden halt in trading for its native cryptocurrency, Nucoin (NUC), on September 10. The decision follows a dramatic 97% drop in the token’s value over the past year. Customers holding Nucoin were notified that they could convert their tokens into Bitcoin or the stablecoin USDC by December 9.
Launched in October 2022 on the Polygon blockchain, Nucoin was initially presented as an ambitious digital asset. However, despite the bank’s robust customer base across Brazil, Mexico, and Colombia, the cryptocurrency struggled to gain traction, hitting a last traded price of just $0.0158, a sharp decline from its all-time high of $0.59 in April 2023.
Nubank explained its decision to suspend trading by citing concerns over market volatility. In an email to customers, the bank stated, “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.”
For customers who opt not to convert their holdings, the bank plans to retain the Nucoins for future benefits as part of its rewards program.
Nubank entered the crypto space in May 2022, allowing customers to buy, sell, and store various cryptocurrencies through a partnership with Paxos. The bank has since expanded its offerings to include 14 different cryptocurrencies and holds 1% of its net assets in Bitcoin. Despite the Nucoin setback, Nubank’s broader cryptocurrency services continue to serve its 100 million-strong customer base.
This move raises questions about the bank’s future crypto strategy and whether it can recover from the poor performance of its native token.
Digital Assets Desk
