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Nexo repurchases native token through $100M buyback program | Invezz

source-logo  invezz.com 15 November 2021 16:46, UTC

Digital asset platform and exchange Nexo has approved a $100 million buyback program allowing the company to rebuy its native NEXO (NEXO/USD) token at its discretion, Invezz learned from a press release. The program takes effect immediately and is expected to end in six months depending on prevailing market conditions.

Tokens to be invested in strategic targets to ensure holder interest

The tokens repurchased by the exchange will go towards investments in strategic targets to ensure token holder interests via token mergers with applicable vesting schemes. Nexo will also use some of these tokens to pay out daily interest in order to ensure transparency and customer trust.

Repurchased tokens placed in IPR

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All NEXO tokens repurchased will be placed in an Investor Protection Reserve (IPR) on the Ethereum blockchain. The term to vest each buyback tranche will be at least a year after repurchase. The tokens will be eligible for mergers and other developments.

Nexo cofounder Antoni Trenchev commented:

The buy-back program announced today reflects our strong financial position and underscores our 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’ll continue to seek acquisitions and token mergers to cement our leadership position in the crypto lending ecosystem.

Nexo completed $12M program this year

This is Nexo’s second token repurchase after completing a $12 million program this year. They might allocate additional budgets for future buybacks depending on market conditions and company growth. Loans collateralized by the native token or revenues from the trading activity using NEXO token pairs will be reinvested directly into the buyback.

Introducing Nexonomics 3.0

The buyback program is a key element of Nexonomics 3.0, the third phase of Nexo’s ongoing tokenomics initiative aimed at increasing Nexo’s value. This initiative has attracted many new members to Nexo’s ecosystem. The token peaked at $4 in May this year, following a meteoric rise of 2,430%.

Up to 12% APY on NEXO tokens

The subsequent Nexonomics 2.0 rollout resulted in the first Nexo Governance Vote, where owners expressed preference for up to 12% APY on NEXO tokens, paid out daily.

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