Decentralized Finance (DeFi)
August 31, 2022 – 4:30 p.m.
Nexo, one of the only platforms in the CeDeFI segment to be still valiant, continues its policy of buying back its own tokens to strengthen the stability and profitability of its ecosystem. The third iteration of this program is $50 million.
A buyback of native tokens for $50 million
The Nexo crypto lending platform just announced that its board of directors had allocated An additional $50 million to redeem its native token, NEXO. The purchase, which represents nearly 9% of NEXO’s total capitalization ($627 million), will be rolled out gradually over six months, “depending on market conditions” so as not to weigh on the price of the token. Once acquired, they will be subject to a blocking period of 12 months. Then eventually, they will be distributed in the form of interest payments to users of the platform, or to make strategic investments “via token mergers”.
So far, Nexo has successfully executed two buyback programs. A first in December 2020 for 12 millions which saw the house crypto subsequently hit an all-time high price of $4 in May 2021. A second in November 2021 for $100 million which saw the company payout over $87 million to holders of the token . Good results that encourage him to continue on this path, at a time when many of his rivals are in distress or, at the very least, in bad shape. Celsius, Voyager Digital and BlockFi can attest to this.
Right now, our investors and customers need solid ground to walk on, and our third token buyback provides that extra stability as we exit the market’s latest rollercoaster..
Antoni Trenchev, co-founder of Nexo, in Communicated
Nexo, a CeDeFi platform that is doing quite well
While Binance or others practice the policy of “burning” to increase the value of their token by decreasing its supply, Nexo’s tactic designed to boost the utility and liquidity of its token is proving quite effective.
While several of its peers or exchanges have laid off at all costs, the company announces a increase in its workforce by 200% over the past twelve months. She also declares investments in new products which should be available in the coming weeks. And still seeking to attest to its financial solidity in the midst of the ambient slump, it officially declared in June seek advice from banking giant Citigroup on how best to acquire the assets of insolvent crypto businesses so investors can regain access to stranded funds. The company proudly claims to have always managed a sustainable business model by not engaging in risky lending practices. For the moment indeed, no corpse has come out of his closet…
Its token reacted quite well to the news, registering a 11% increase in 24 hours according CoinGeckoto display at $1.10.
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Nexo Allocates $50M More To Buyback Its Native Token
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