Nubank Shuts Down Nucoin After 97% Collapse, Impacting 16M Holders
Nubank launched its Polygon-based Nucoin loyalty token in 2023, distributing it via airdrop to over 100 million customers before it collapsed 97% in value. Trading was suspended September 2024 and the token was fully decommissioned by December, leaving 16 million holders.
1. Nucoin Launch and Initial Adoption
Nubank introduced Nucoin as a Polygon-based ERC-20 loyalty token in 2023, distributing it via airdrop to its more than 100 million customers. The token was intended for earning rewards on platform purchases and could be traded or redeemed for other cryptocurrencies.
2. Rapid Value Collapse
Nucoin’s market value plunged 97% shortly after launch, undermining its utility and investor confidence. Trading volume remained low, and volatility deterred sustained user engagement.
3. Suspension and Decommissioning Timeline
In September 2024, Nubank suspended Nucoin trading and gave holders 90 days to convert balances to Bitcoin or USDC. The token was officially decommissioned by December 2024, with remaining balances auto-converted or forfeited.
4. Customer Impact and Lessons Learned
Approximately 16 million users held devalued Nucoin tokens at shutdown, prompting Nubank to run a prize campaign to mitigate backlash. The failure highlights challenges in launching volatile loyalty tokens and may shift the bank toward more stable rewards structures.