Nexo takes off Buyback program, commits initial $12 mn
By Pavithra R
Nexo, bringing professional banking services to the world of digital assets has announced the details of its buyback program. The company’s Board of Directors approved an initial repurchase of $12 mn of its NEXO Token on an open-market principle, with the decision coming into force with immediate effect.
The move seeks to boost the value of the NEXO Token, which marked a 160% price increase since the launch of its campaign. The buyback program is another step to bolster the NEXO Token’s stability and growth potential, rewarding token holders for their investment & loyalty.
“Nexo has had another record year, affording us the flexibility to give back to our clients and reinvest in the company and the NEXO Token as an integral part of the business. The market is finally acknowledging what the pricing models have been saying since our 2018 token sale – that the NEXO Token holds tremendous potential that has so far been undervalued. Our first buyback program highlights the Nexo team’s firm belief in our native token’s prospects and further incentivizes investors to share our view,” said Co-Founder and Managing Partner Antoni Trenchev.
NEXO Tokens repurchased within the program will be placed on the blockchain transparently in an Investor Protection Reserve (IPR) with an ERC-20 address. The firm will be repurchasing $12M worth of $NEXO Tokens to be vested for 12 months in its publicly visible Investor Protection Reserve. Tokens locked into the IPR will not be eligible for dividends, making the program beneficial to loyal NEXO Token holders during future dividend distributions.
Upon management discretion, buyback tranches may be withdrawn or re-locked to be used for interest & cashback payments, dividend distributions and/or liquidity provision on decentralized exchanges. The Buyback program boosts token liquidity, thus reducing price volatility, and gives token holders additional security that the token’s value will continue to rise.
“We have seen demand for the NEXO Token progressively increase, confirming its desirability – its price tripled, and over 60% of our clients chose to earn interest in NEXO Tokens over the past month. With buybacks guaranteeing the supply remains limited, we are closing the circle and laying the groundwork for an even more desirable NEXO Token with an even stronger token economy,” continued Trenchev.