Warren Buffett-backed Nubank, a Brazil-based neobank that debuted cryptocurrency options trading in May 2022 on its platform, has announced the launch of nucoin, its own cryptocurrency. Part of the first batch of the coin, issued on top of 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 the institution’s end users, with 80% of the total issuance going to clients.
According to local reports, nucoin will be key to several activities in the future, including establishing a cashback program, with users receiving token rewards, and running internal nucoin giveaways. Nucoin will not have a secondary market, since transactions with the token will only be available on the Nubank platform.
Nucoin is already available to a portion of the 70 million customers the exchange reported reaching in September, with almost 2 million buying cryptocurrency. The initial price of the coin (if it will have a certain price) was not disclosed by Nubank.
More options
According to reports from local outlets, Nubank will introduce more options related to its coin, including participation programs that will allow customers to lock up their nucoins to receive more nucoins over a period of time or receive more internal raffle tickets. There will reportedly be a future option to exchange nucoins for cash through the platform.
The issuance and launch of nucoin does not come as a surprise to some, as the company has been working on this initiative since October, when Fernando Czapski, Nubank’s senior director and general manager, stated that the company believed in the “transformational 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 of last year, when the organization also issued its own cryptocurrency, called mercadocoin, to be part of its loyalty programs. However, Mercado Libre did set an initial price for its token, valued at $0.10 upon launch.
What do you think of Nubank issuing its own cryptocurrency in addition to Polygon? Tell us in the comment section below.
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