Warren Buffett-Backed Neobank Nubank Launches Own Currency Nucoin
Warren Buffett-backed Nubank, a Brazil-based neobank that debuted crypto trading options back in May 2022 on its platform, has announced the launch of nucoin, its own cryptocurrency. Part of the first batch of the currency, issued on top of Polygon’s network, will be issued to its customers as an airdrop, and for cashback purposes.
Nubank Launches Nucoin Cryptocurrency
Warren Buffett-backed Nubank, one of the biggest 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 end users of the institution, with 80% of the total issuance being directed to the customers.
According to local reports, nucoin will be key to several activities in the future, including the establishment of a cashback program, with users receiving rewards in the form of the token, and the realization of internal nucoin raffles. Nucoin will not have a secondary market, as transactions with the token will be only available on Nubank’s platform.
Nucoin is already available to a part of the 70 million customers the exchange reported having reached back in September, with almost 2 million having purchased crypto. The initial price of the currency (if it will have a determined price) was not disclosed by Nubank.
According to reports from local outlets, Nubank will present further 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 tickets for internal raffles. There will reportedly be a future option to exchange nucoins for cash via the platform.
The issuance and launch of nucoin comes as no surprise to some, as the company has been working on this initiative since October, when Fernando Czapski, senior director and general manager at Nubank, stated that the company believed in the “transformative potential of blockchain technology” and in its democratization.
The initiative is similar to the 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 did establish an initial price for its token, valued at $0.10 at the time of its launch.
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