- This initiative allows Nexo to buy back its native NEXO Tokens.
- Nexo has already completed its second token buyback campaign.
Nexo is a renowned global regulated digital asset institution. With top-tier custodial insurance and military-grade security, the Nexo Wallet’s purpose is to increase the value and usefulness of cryptocurrencies.
This initiative allows Nexo to buy back its native NEXO Tokens on the open market for up to $100 million. It is scheduled to be completed within six months, following which the Nexo Board of Directors may decide on a further buyback.
The repurchased tokens will be used to invest in strategic targets through token mergers with suitable vesting schemes. Nexo will also utilize some of the repurchased tokens to pay daily interest to customers who want to receive their yields in NEXO Tokens. As previously stated, all NEXO Tokens utilized for interest distributions are derived from the open market and do not affect the circulating supply.
Lesser-valued NEXO Tokens will be deposited in an Investor Protection Reserve (IPR) using the ERC-20 address 0x1C433CBF4777aaa8cDC76B497. Each buyback tranche will be vested for 12 months. Token mergers, daily interest distributions, and other advancements will not be possible until this time has ended. The specifics of the following transactions will be regularly made public on Nexo’s website and communication channels.
Antoni Trenchev, Co-Founder and Managing Partner at Nexo commented:
“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. As Nexo’s market share increases and the industry matures, we’ll continue to seek acquisitions and token mergers to cement our leadership position in the crypto lending ecosystem.”
Nexo has already completed its second token buyback campaign, after a $12 million programme earlier this year. Future buyback expenditures may be allocated based on business growth and market circumstances. Profits from exchanging NEXO Token pairings on the Nexo Exchange or loans collateralized by Nexo’s native token will be reinvested directly into the repurchase programme.
NEXO Token’s Liquidity and Value
This new buyback is in line with Nexo’s aim to raise the NEXO Token’s liquidity and value. The initiative also aligns with Nexo’s recent investments in FINRA-member and SEC-registered broker-dealer Texture Capital, decentralized technology supplier Qredo, and DeFi enterprise Yield.
The buyback program is the cornerstone of Nexonomics 3.0, Nexo’s continuous tokenomics project to improve the NEXO Token’s usefulness and value. Tokenomics has helped Nexo’s ecosystem get a large number of new members. In May 2021, the NEXO Token reached an all-time high of $4, as a result of the inaugural Nexonomics project. With the release of Nexonomics 2.0, the first NEXO Governance Vote was held, in which token holders voted for daily rewards of up to 13% APY on NEXO Tokens. Since then, the firm has paid out over $87 million in daily NEXO and earned interest to token holders.
Nexo obtained the industry’s first real-time audit through Armanino and built a sophisticated prime brokerage offering. It has benefited from increasing digital asset values and robust demand for its tax-efficient cryptocurrency-backed credit lines and exchange services since its last buyback in late 2020.
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