LONDON, November 16, 2021– (BUSINESS WIRE) – Nexo, the leading regulated institution for digital assets, today announced that its board of directors has approved a $ 100 million buyback program, which allows the company to periodically repurchase its Native NEXO token on the open market. The token buyback program will begin immediately and should, depending on prevailing market conditions, be completed within six months, after which the Nexo board of directors may determine a subsequent buyback.
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The redeemed tokens will be dedicated to investments in strategic targets via token mergers with applicable acquisition systems to guarantee the interests of token holders. To meet its commitment to transparency and client trust, Nexo will also use a portion of the redeemed tokens to pay daily interest to clients who choose to receive their returns in NEXO tokens. As previously stated, all tokens used for the payment of interest in NEXO tokens are from the open market and therefore will NOT impact the circulating supply.
NEXO tokens redeemed under the program will be placed on the blockchain in an Investor Protection Reserve (IPR) with an ERC-20 address 0x1C433CBF4777e1f0dCe0374d79aaa8ecDC76B497. Each redemption tranche will vest for a minimum of 12 months after the redemption. It is only after this period has expired that tokens will be eligible for token mergers, daily interest payments, and other developments. An overview of the transactions carried out under this buyback program, as well as the above transaction details, will be made available periodically on Nexo’s website and communication channels.
âThe buyback program announced today reflects our strong financial position and underlines our ability to simultaneously upgrade our products, maintain a strong balance sheet and invest in alternative growth strategies, while providing significant utility and growth. to NEXO token holders. As Nexo increases market share and as the industry matures, we will continue to seek symbolic acquisitions and mergers to consolidate our leadership position in the crypto lending ecosystem, âcommented Antoni Trenchev, co-founder and managing partner of Nexo.
The buyback marks Nexo’s second token buyback initiative, following the successful completion of a $ 12 million program earlier this year. Additional budgets may be allocated for future buyouts based on business growth and market conditions. As an additional stimulus for the program, income from trading activity using NEXO token pairs on the Nexo Exchange, or loans secured by Nexo’s native token will be reinvested directly into the buyout.
This latest buyback is aligned with Nexo’s plan to further improve the liquidity of the NEXO token and increase its value. The program also complements Nexo’s efforts to facilitate institutional access to the cryptocurrency ecosystem through investments in reliable blockchain infrastructure, as evidenced by its recent stake in FINRA member Texture Capital. and SEC registered broker, decentralized technology provider Qredo, and DeFi Yield company. .
The buyback program is the cornerstone of Nexonomics 3.0, the third phase of Nexo’s ongoing tokenomics initiative designed to improve the usefulness of the NEXO token and enhance its value. Tokenomics have played a vital role in attracting a large number of new members to the Nexo ecosystem. In response to the first Nexonomics initiative, the value of the NEXO token increased by 2430%, reaching a record high of $ 4 in May 2021. The successive deployment of Nexonomics 2.0 ushered in the first NEXO governance vote in which holders of tokens have indicated their preference for daily payments. up to 12% APY on NEXO tokens. Since then, the company has returned more than $ 87 million to token holders in daily interest on NEXO and Earn NEXO payments.
Nexo, which now manages $ 15 billion in assets, has achieved a number of milestones across the board: getting the industry’s first real-time audit through Armanino and developing a sophisticated brokerage product. Since launching the previous buyout in late 2020, the lender has continued to benefit from rising digital asset prices and strong demand for its tax-efficient lines of credit and swap services.
Nexo is one of the world’s leading regulated digital asset institutions. The company’s mission is to maximize the value and utility of cryptocurrencies by offering tax-efficient Instant Crypto â¢ lines of credit, a high-yielding crypto income suite, instant exchange service and sophisticated capabilities. negotiation and over-the-counter, while providing the highest level of custody assurance and military-grade security in the Nexo portfolio. Nexo has processed over $ 50 billion for over 2,500,000 users in over 200 jurisdictions.
Official site: nexo.io
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