Cryptocurrency lender Nexo has launched a $ 100 million token buyback program for its native tokens as we read more about our latest crypto news.
Cryptocurrency lending company Nexo and its board of directors announced a $ 100 million buyback program for its native token, and under the terms of the program, the company is allowed to buy back NEXO on the open market on a regular basis. The program is expected to be completed in the next six months. After that, the NEXO board of directors can decide to extend the program, the company stated in a press release. Antoni Trenchev, co-founder of Nexo, said:
“Buyback program” […] reflects our strong financial position and underscores our ability to upgrade our products, have a strong balance sheet and invest in alternative growth strategies at the same time, all of which offers significant value and growth to NEXO token holders. ”
Nexo is an ERC-20 based token and is used to pay dividends out of revenue on the platform.
The current market capitalization is set at $ 1.86 billion. The company said the tokens acquired will be used for investments through token consolidation, as well as paying interest to customers who receive their earnings. The company said it bought tokens that will be used for the merger, but will not be able to use those purchased tokens immediately, as any redemption will be placed in investors’ protection reserve for 12 months. This is the second token buyback initiative after completing similar programs worth $ 12 million earlier this year.
All tokens redeemed in the program can be tracked via a dedicated ERC-20 address. The most recent buyback program is a core element of Nexonomics 3. with the third phase of the company’s ongoing partnership initiative aimed at increasing the utility and value of the token. According to the company, the value of the native token rose 2430% after the first kill, rising to a new high of over $ 4. At press time, the native token is trading at $ 3.32, up 2.8% from last day.
The NEXO Governance Voting enables token holders to prefer daily payments up to 12% of the token previously introduced with Nexonomics 2. In addition to the company’s tokenimoc efforts, the company is actively investing in crypto projects and other businesses. A week ago, the company acquired a stake in the broker-dealer Texture Money and made further strategic investments in the decentralized infrastructure company for digital assets Qredo.