Nexo Commits Additional $50 Million to Long-standing Buyback Initiative
LONDON--(Business Wire / Korea Newswire) August 31, 2022 -- Nexo’s Board of Directors has today allocated a further $50 million to the company’s long-standing Buyback initiative. This approval enables the leading regulated digital assets institution to discretionally and periodically repurchase its native NEXO Token in the open market. This development comes as a continuation of the previous $100 million Buyback which Nexo completed earlier this year, in May.
“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,” commented Antoni Trenchev, Nexo Co-Founder and Managing Partner.
“In these challenging market conditions, the NEXO Token has moved consistently with the likes of BTC and ETH, demonstrating that, proportionally, demand for our native asset remains strong. Right now, our investors and clients require solid ground to walk on, and our third token buyback ensures this added stability as we emerge from the latest market rollercoaster,” he added.
Starting immediately, the new $50 million buyback program is scheduled to be completed in six months, contingent upon market conditions. All repurchased tokens will be placed in Nexo’s established on-chain Investor Protection Reserve (IPR) with the following ERC-20 address: 0x1C433CBF4777e1f0dCe0374d79aaa8ecDC76B497. Per the company’s long-standing dedication to transparency, monthly communication regarding the ingress of bought back tokens to this address will be shared through Nexo’s website and other official channels.
Upon repurchase, each tranche of tokens is subject to a 12-month vesting period. Once the lock-up term has expired, repurchased tokens might be dedicated to daily interest payouts in NEXO Tokens and strategic investments via token mergers with applicable vesting schemes to ensure token holder interests.
To provide an auxiliary momentum to the program, revenue from NEXO Token pairs on the platform’s native exchange and NEXO Token-collateralized credit will be reinvested directly into the buyback. As always, the Nexo Board of Directors may allot additional budgets for future buybacks in accordance with company growth and market conditions.
As the third NEXO Token buyback, this program is part of a now years-long tradition of token-centric initiatives designed to bolster the utility and liquidity of the NEXO Token. With three successful Nexonomics editions, each ushering in new and improved tokenomics mechanisms - the Loyalty program, Earn in NEXO, a Governance Vote for the platform, and others - Nexo continues to build out its token with utility as its linchpin. Over time the crypto industry has proven that it is projects and assets rich in such real applications that thrive.
While volatility has been prevalent in the market and a bearish trend has forced multiple crypto companies out of business, Nexo remains steadfast, as demonstrated by its industry-unique real-time audit. The company is working to provide relief to the industry by offering liquidity to distressed players and by participating in the consolidation of the space through its expansive M&A war chest. Complementary to this, Nexo is also among the few companies to continue and even expand its recruitment and retention plans, with its team headcount having grown by 200% over the last 12 months, all while investing in major new products, which the firm plans to launch in the upcoming weeks.
Nexo is the world’s leading regulated digital assets institution. The company’s mission is to maximize the value and utility of cryptocurrencies by offering an advanced exchange service with 400+ market pairs, tax-efficient Instant Crypto Credit Lines™, a high-yield Earn Crypto Interest suite, and sophisticated trading and OTC capabilities, while providing the top-tier custodial insurance and military-grade security of the Nexo Wallet. Nexo has processed $100+ billion for 5,000,000+ users across more than 200 jurisdictions. Visit nexo.io to learn more.
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This is a news release distributed by Korea Newswire on behalf of this company.