In March 2023, a digital financial services platform in Latin America (LatAm), Nubank, launched its free, native crypto token, Nucoin. However, a year and a half later, the neobank has announced that buying and selling the crypto asset will no longer be possible on its app.
Originally announced in late 2022, Nucoin was created as a loyalty programme for user engagement. Customers could earn tokens by interacting with the Nubank app in a certain way (using credit cards or app transactions for example).They could then freeze their Nucoins to level up in the programme to unlock further benefits such as coinback rewards and lottery tickets. Alternatively, they could trade Nucoins between other customers for cash.
To enable Nucoin’s availability, Nubank joined forces with Polygon Labs, the development and growth team for the decentralised Polygon protocol. Nubank leveraged Polygon’s technology and technical support for the evolution and expansion of its cryptocurrency.
Suspending the digital asset
Trading has already been suspended as Nubank reveals its plan for its token to stop further price fluctuations. From now on, users will only be able to exchange Nucoins for benefits and products within the app. These range from discounts at Nubank Shopping to advantages in experiences promoted by Nu.
Users who have at least R$100 in Nucoins can redeem their tokens for Bitcoin or USDC until 9 December 2024. They will also have the opportunity to participate in raffles whose prizes can reach R$1million. Nucoin holders will have the opportunity
Frozen Nucoins can be withdrawn, providing users have at least 1,745 tokens in total (including frozen and available assets). Should users do so however, they will lose any previously acquired benefits from the programme. For users with less than 1,745 Nucoins, Nubank has informed that it will let them unfreeze any frozen assets in due course.
According to CoinLore, Nucoin’s value has dropped from its official launch in 2023 from $0.4227 to $0.015 in September 2024.