Nubank, backed by Warren Buffett, a Brazil-based neobank that launched crypto trading options in May 2022 on its platform, announced the launch of nucoin, its own cryptocurrency. A portion of the first batch of the currency, issued above Polygon’s network, will be issued to its customers as an airdrop and for redemption purposes.
Nubank launches Nucoin cryptocurrency
Nubank, backed by Warren Buffett, one of the largest digital neobanks in Latam, has announced the issuance of its own cryptocurrency called nucoin. The token, which is issued on top of the Polygon network, will be airdropped to institutional end users, with 80% of the total issuance directed to customers.
According to the locals reports, nucoin will be key to several activities in the future, including establishing a cashback program, users receiving rewards in the form of tokens, and conducting internal nucoin sweepstakes. Nucoin will not have a secondary market, as transactions with the token will only be available on Nubank’s platform.
Nucoin is already available to some of the 70 million customers the exchange reported reaching in September, nearly 2 million of whom purchased crypto. The initial price of the coin (if it will have a fixed price) has not been disclosed by Nubank.
More options
According to reports from local outlets, Nubank will introduce other options involving its currency, including staking programs that will allow customers to lock their nucoins to receive more nucoins over a period of time, or to receive more banknotes. for internal raffles. There would be a future option to exchange nucoins for cash through the platform.
The issuance and launch of nucoin comes as no surprise to some, as the company has been working on the initiative since October, when Fernando Czapski, Senior Director and Managing Director of Nubank, said the company believed in the “transformative potential of blockchain technology”. and in its democratization.
The initiative is similar to one executed by retail and financial services company Mercado Libre in August last year, when the organization also issued its own cryptocurrency, called mercadocoin, to be part of its loyalty programs. However, Mercado Libre has established an initial price for its token, valued at $0.10 at launch.
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