Nexo Finance launches $100m buyback program for NEXO tokens
Nexo Finance declared a $100 million buyback program of the native tokens NEXO. The company estimates the whole interaction will be finished in the next six months.
According to the announcement, the company had endorsed the plan and authorized it to regularly "buy back" the native token on the open market on a regular basis. The process has already started "depending on the market situation" and should be finished in the second quarter of 2022
Based on the progress of the buyback plan, Nexo's board of directors will consider another buyback plan dependent on the result.
Nexo plans to utilize the repurchased tokens for "investments in strategic targets via token mergers with applicable vesting plans to ensure token holder interests." it will also utilize portions of the coins to "make daily interest payout to clients who opt to accept their yields in NEXO tokens."
Every one of the buyback tranches will be vested for at least a year the repurchase. The statement expressed that after this period the tokens would be qualified for token mergers, daily interest payments, and other developments.
The co-founder and managing partner, Antoni Trenchev exclaimed that this buyback program aims to demonstrate the company "strong financial position" it also underscores Nexo's ability to "simultaneously upgrade our products, maintain a strong balance sheet, and invest in alternative growth techniques, all while giving significant utility and development 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 quite important that this would be Nexos second buyback drive. The firm has done its initial one recently, yet the whole sum was fundamentally less than $12 million.