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Nexo Launches $100m Buyback Program for NEXO Tokens

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Nexo Launches $100m Buyback Program for NEXO Tokens

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Popular cryptocurrency lender Nexo announced a $100 million program to buy back native tokens. The company estimates the entire process will be completed in the next six months.

According to its press release, the company Board of Directors had approved the plan and authorized it to regularly “buy back” the native token Nexo on the open market on a regular basis. The process has already started “depending on the market situation” and should be completed in the second quarter of 2022.

Based on the progress of the buyback plan, Nexo’s board of directors will consider another buyback plan based on the results.

Nexo aims to use the repurchased tokens for “investments in strategic targets via token mergers with applicable vesting schemes to ensure token holder interests.” It will also utilise portions of the coins to “make daily interest payouts to clients who opt to receive their yields in NEXO tokens.”

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Each of the buyback tranches will be vested for at least a year after the repurchase. The statement stated that after this period the tokens would be eligible for token mergers, daily interest payments, and other developments.

BuyBack Program Puts Nexo in Strong Financial Position

Antoni Trenchev, Nexo’s co-founder and managing partner, noted that this buyback program aims to demonstrate the company’s “strong financial position.” It also underscores Nexo’s 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.”

“As Nexo’s market share increases and the industry matures, we will continue to seek acquisitions and token mergers to cement our leadership position in the crypto lending ecosystem.” – Trenchev added.

It’s worth noting that this would be Nexo’s second buyback initiative. The firm carried out its first one earlier this year, but the entire amount was significantly less – $12 million.

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