Nexo commits additional $50M to buyback initiative
- Nexo’s native token NEXO jumped more than 8% as the company announced an additional repurchase plan worth $50 million.
- The repurchase starts immediately and will continue over the next six months.
- Nexo completed a $100 million buyback program, launched in November 2021, in May this year.
Digital assets platform Nexo has committed a further $50 million to its long-standing buyback program after the initiative received backing from the company’s Board of Directors, according to details shared on Tuesday.
The board’s approval allows the crypto lender to make discretionary and periodic repurchases of the native token NEXO, the firm announced.
With the $50 million commitment, Nexo is set to add to the $100 million buyback plan the company launched in November 2021, and which ended in May this year.
“The allocation of an additional $50 million to our buyback plan is a result of our solid liquidity position and Nexo’s ability and readiness to spur on its own products, token, and community, alongside its outward-facing initiatives of injecting liquidity into the industry,” said Nexo co-founder Antoni Trenchev.
The native token NEXO
According to Nexo, the buyback will be from the open market and starts immediately. The firm also expects the program to continue for the next six months, with all token repurchases going into the company’s on-chain reserve for a vesting period of 12 months.
At the end of the lock-up period, Nexo could use the repurchased tokens to pay daily interest to customers via the native NEXO token. The platform could also use them in strategic investments through token mergers, with the deals incorporating vesting schemes to protect NEXO holders’ interests.
Currently, NEXO price is around $1.04, gaining by more than 8% in the past 24 hours and nearly 17% up over the past week. Despite the crypto bear market, the NEXO token is up by more than 43% over the past month.
So, although NEXO is down more than 70% from its all-time high above $4.00 reached in May 2021, demand for the token looks to be strong across the market.
“In these challenging market conditions, the NEXO Token has moved consistently with the likes of BTC and ETH, demonstrating that, proportionally, demand for our native asset remains strong. Right now, our investors and clients require solid ground to walk on, and our third token buyback ensures this added stability as we emerge from the latest market rollercoaster,” Trenchev added.
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