Nexo allocates $50M to its routine token buyback 

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On August 30, crypto exchange platform Nexo announced the allocation of an additional $50 million to carry out ad hoc and routine buybacks of its NEXO token on the open market.

This would be the exchange’s second financial investment in repurchasing its tokens this year, according to a statement from the firm. The initial instance occurred in May when they declared the repurchase of $100 million worth of NEXO tokens.

The distribution of this $50 million, according to the company’s co-founder and managing partner Antoni Trenchev, shows the company’s strong liquidity position in a time when several crypto exchanges have had to suspend operations.

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“The allocation of an additional $50 million to our buyback plan is a result of our solid liquidity position and Nexo’s ability and readiness to spur on its own products, token, and community, alongside its outward-facing initiatives of injecting liquidity into the industry,” the company said.

According to Trenchev, the company and the NEXO token have continually moved in lockstep with BTC and ETH, demonstrating stability and demand for the asset amid “challenging market conditions.” According to data from CoinMarketCap, Nexo currently has a total market capitalization of over $581 million.

NEXO buyback will take place over the next 6 months

Almost 10% of the entire capitalization of the token is represented by the $50 million buyback. To avoid affecting the token’s price, NEXO said the buybacks will take place over a six-month period and “based on the market conditions.”

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The exchange stated that, subject to a vesting period, repurchased tokens will be locked and held in its Investor Protection Reserve (IPR) for a period of 12 months. After this time has passed, the company will be able to use the tokens to develop strategic investments through “token mergers” or to pay interest amounts.

Crypto lending giant has demonstrated its potential to join the elite of the cryptocurrency world. In contrast to numerous exchanges that are facing insolvency and laying off employees, it announced a 200% growth in employment over the previous 12 months while continuing to make multi-million dollar investments to keep growing its reach. In July as TheCoinRise reported, Nexo made an exclusive move to acquire troubled crypto lender Vauld Group.

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