Lending platform Nexo approves $100M Token Buyback Program
A $100 million buyback program for Nexo's native token NEXO was approved by the company's Board of Directors. The terms of the program now allow NEXO to periodically repurchase its tokens on the open market at the discretion of the company.
Nexo, the leading regulated institution for digital assets will begin its buyback program immediately and is expected to complete it within six months, depending on market conditions. The Nexo Board of Directors will then decide whether a consecutive buyback will be undertaken.
The repurchased tokens will be invested in strategic targets in order to protect token holders' interests through token mergers with vesting schemes. As part of Nexo's commitment to ensure customer trust and transparency, some of these tokens will also be used to pay out daily interest.
Nexo co-founder and managing partner Antoni Trenchev said in a statement, "The buy-back program announced today reflects our strong financial position and underscores our ability to simultaneously upgrade our products, maintain a strong balance sheet, and invest in alternative growth strategies, all while providing significant utility and growth to NEXO Token holders."
The latest buyback campaign is a crucial part of Nexonomics 3.0, the company's ongoing tokenomics project aimed at increasing the token's usage and value. As part of its tokenomics endeavors, the company also actively invests in crypto projects and crypto-related firms.
In recent months, Nexo has been in an overall bullish trend. This week, the coin has dropped from a high of $3.7242 to a low of $3.285, reversing the trend. Thus, for now, it is expected that the coin will continue to fall, even though the overall trend is bullish.
Nexo is a major and rapidly expanding blockchain firm. It has a website and mobile apps that serve millions of people all over the world. Throughout its journey, it has raised more than $52 million from investors.
The company has an exchange where people can purchase and stake cryptocurrencies, such as Bitcoin and Avalanche. Additionally, the firm offers a yield product through which users can earn returns by depositing cryptocurrencies.
CBW - External Analyst