The company’s first token buyback program worth $12 million was completed earlier this year
Leading regulated digital assets institution Nexo has announced that it will be undertaking a $100 million buyback program, allowing the company to repurchase its native token periodically from the open market. The repurchased tokens will be utilised in strategic investments via token mergers and to offer daily payouts to clients who receive their yields in NEXO tokens.
The press release stated that the tokens repurchased under the buyback program will be placed on the blockchain in an Investor Protection Reserve (IPR). The company will begin repurchasing immediately and expects to complete the token buyback program within six months.
Nexo’s Board of Directors will take a call on a consecutive buyback after the current token buyback program is completed. Further, each buyback tranche will be vested for a minimum of twelve months indicating that the tokens will be eligible for token mergers and daily payouts only after this period has expired.
The company has also stated that revenues from the trading activity using NEXO Token pairs on the Nexo Exchange, or loans collateralized by Nexo’s native token will be reinvested directly into the buyback.
Antoni Trenchev, Co-Founder and Managing Partner at Nexo stated that the company will continue to seek acquisitions and token mergers in order to cement its leadership position in the crypto lending ecosystem:
“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.”
The company clarified that the daily interest payouts in NEXO will not impact circulating supply as all tokens used for the program will be sourced from the open market. In order to further its commitment to transparency, an overview of all transactions conducted under the buyback program will be available on NEXO’s website periodically.
This is NEXO’s second token buyback program. A $12 million buyback program was completed earlier this year with further such initiatives expected based on the company’s growth and market conditions.