Nubank, one of Latin America's largest crypto banks and backed by Warren Buffet's Berkshire Hathaway, announced on Sept. 10 the immediate suspension of trading for Nucoin, its native cryptocurrency.

This decision comes after the token's price plummeted over 97% in the past year, causing widespread concern among investors and users alike.

The Rise and Fall of Nucoin

Nubank first announced the creation of the Nucoin token on the Polygon blockchain on Oct. 19, 2022. The initial excitement around the token was palpable, with many seeing it as a significant step in the bank's expansion into the crypto market. However, less than two years later, the bank ceased token trading.

According to CoinMarketCap data, Nucoin's last traded price was $0.0158. The token has experienced a dramatic fall from its all-time high of $0.59 in April 2022.

Nubank has provided its customers with at least ten reals (in Nucoins) the option to convert them to Bitcoin or stablecoin USDC by Dec. 9. If users do not proceed with the conversion, the cryptocurrencies will be kept for accumulation and "future benefit from the rewards program."

"To protect you and all participants from potential volatility in the market value of Nucoins due to potential reactions to this update, we have chosen to suspend your trading immediately," Nubank stated in an email to its customers.

Nubank's Grand Plans

Nubank's foray into cryptocurrency services began with grand ambitions. In May 2022, the bank announced that it would allocate 1% of its net assets to Bitcoin (BTC). It also partnered with Paxos to enable its customers to buy, sell, and store cryptocurrencies directly through Nubank.

By July this year, Nubank reported having 100 million customers across Brazil, Mexico, and Colombia. A statement from Nov. 22 revealed that Nubank offered 14 cryptocurrencies besides Nucoin (NUC).

The Broader Crypto Landscape in Latin America

The suspension of Nucoin trading comes amid a broader context of increasing cryptocurrency adoption in Latin America. According to Forbes analysts, Argentina has been at the forefront of this trend, driven by an annual inflation rate of 276%.

The July 9 report highlighted that 2.5 million of the 130 million visitors to 55 of the largest exchanges globally were from Argentina.

During a panel session at the Web Summit Qatar on Feb. 27, Juan Pablo Ortega, co-founder and CEO of online payment platform Yuno, discussed the profound distrust towards banks in regions like Argentina.

This distrust leads many locals to store their cash physically and make large purchases, such as buying a house, with money.

Ortega emphasized that he is witnessing a financial inclusion "revolution" driven by fintech firms in Latin America, Asia, and Africa.

However, he noted that for true inclusion to occur, regulators must first amend the laws, followed by efforts from companies and fintechs to rebuild consumer trust.