Nexo Allocates Additional $50M To Its Token Buyback Plan

Crypto lending firm Nexo has confirmed the allocation of an additional $50 million to its NEXO token buyback initiative and will hold the cryptocurrency in a vesting period for over 12 months.

According to a Tuesday blog post by Nexo, the Switzerland-based crypto lender will purchase $50 million worth of NEXO, its native token, over a period of 6 months.

"The allocation of an additional $50 million to our buyback plan is a result of our solid liquidity position and Nexo's ability and readiness to spur on its own products, token, and community, alongside its outward-facing initiatives of injecting liquidity into the industry," stated Antoni Trenchev, Nexo Co-Founder and Managing Partner.

A similar buyback initiative was implemented between November 2021 and May 2022 wherein Nexo bought over $100 million of NEXO tokens. As of 12:17 a.m. ET Wednesday, the NEXO coin was trading at a price of $1.11 with a 12.56% price surge in the last 24 hours.

As per CoinMarketCap data, the NEXO token was down by 75.87% from its all-time high of $4.63 noted on Nov. 16, 2021.

Interestingly, Nexo has avoided a fate similar to rival crypto lender Celsius Network which halted withdrawals, filed for Chapter 11 bankruptcy, and is currently undergoing a restructuring process. Along with Celsius, former crypto moguls Voyager Digital and Three Arrows Capital (3AC) also went bankrupt.

"In these challenging market conditions, the NEXO Token has moved consistently with the likes of BTC and ETH," Trenchev said, adding, "Right now, our investors and clients require solid ground to walk on, and our third token buyback ensures this added stability as we emerge from the latest market roller coaster."

The NEXO tokens purchased will be kept in the firm's on-chain Investor Protection Reserve (IPR) with the following ERC-20 address: "0x1C433CBF4777e1f0dCe0374d79aaa8ecDC76B497"

Once the vesting period is over, the NEXO tokens repurchased will be used for daily interest payouts and "strategic investments via token mergers with applicable vesting schemes to ensure token holder interests," the firm said in the post.

Nexo aims to emerge as a major Web3 and DeFi firm out of the current bearish market as it recently announced the launch of its venture arm headed by Tatiana Metodieva, Nexo's head of corporate. The venture arm will invest $150 million in Web3 development.