Nexo Crypto Lender Launched Its $100M Token Buyback Program

Nexo crypto lender launched its $100 million token buyback program for its native token as we are reading more in our latest cryptocurrency news.

Nexo crypto lender and its board of directors announced a $100 million buyback program for its native token and according to the program’s terms, the company is authorized to repurchase NEXO periodically on an open market. It is expected that the program will be completed in the next six months after which NEXO Board of Directors could decide to prolong the program as the company noted in a press release. Antoni Trenchev, co-founder at Nexo said:

“The buy-back program […] 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.”

Nexo is a token based on the ERC-20 and used to pay out dividends from earnings on the platform. The current market cap is set at $1.86 billion. The company said that the repurchased tokens will be used for investments via token mergers as well as for interest payouts to the clients that receive their yields in NEXO. The company said that it purchased tokens that will be used for mergers as well but it won’t be able to use these repurchased tokens right away as each buyback tranche will be placed in the Investor Protection Reserve for 12 months. This is the second token repurchase initiative after the completion of $12 million similar programs earlier this year.

All of the tokens repurchased in the program can be tracked via a dedicated ERC-20 address. The latest buyback program is a core element of Nexonomics 3.0 with the third phase of the company’s ongoing tokenimics initiative that aims to enhance the utility and value of the token. As per the company after the first initaitive, the native token increased in value by 2430% and surged to a new high above $4. As of the time of writing, the native token is trading hands at $3.32 which is marking an increase of 2.8% over the past day.

The NEXO governance vote which allows token holders to indicate a preference for the daily payouts of up to 12% in the tokens was introduced previously with Nexonomics 2.0 and the proposal passed with 90% of voters indicating that they are up for the proposal. Alongside the company’s efforts for tokenimocs, the company is actively investing in crypto projects and other companies. A week ago, the company acquired a stake in Texture Capital broker-dealer and made other strategic investments in decentralized digital asset infrastructure company Qredo.