The popular cryptocurrency lender – Nexo – has announced a buyback program for its native token worth $100 million. The company estimates that the entire process will be completed within the next six months.
Nexo’s $100M Buyback Program
The press release shared with CryptoPotato informed that the company’s Board of Directors had approved the program, authorizing it to “discretionally repurchase” the native token Nexo in the open market periodically. The procedure has already begun and, “depending on prevailing market conditions,” should be completed by Q2 2022.
Depending on how this buyback program goes, the Nexo Board of Directors will contemplate another one based on the results.
Nexo aims to use the repurchased tokens for “investments in strategic targets via token mergers with applicable vesting schemes to ensure token holder interests.” It will also utilize portions of the coins to “make daily interest payouts to clients who opt to receive their yields in NEXO tokens.”
Each of the buyback tranches will be vested for at least a year after the repurchase. Following the expiration of this period, the coins will be eligible for token mergers, daily interest payouts, and other developments, the statement explained.
Strong Financial Position
Antoni Trenchev, Nexo’s co-founder and managing partner, noted that this buyback program aims to demonstrate the company’s “strong financial position.” It also underscores Nexo’s 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 will continue to seek acquisitions and token mergers to cement our leadership position in the crypto lending ecosystem.” – Trenchev added.
It’s worth noting that this would be Nexo’s second buyback initiative. The firm carried out its first one earlier this year, but the entire amount was significantly less – $12 million.