LONDON--(BUSINESS WIRE)--Nexo, the leading regulated digital financial institution with over $2 billion in assets under management, today announced the details of its buyback program. The company’s Board of Directors approved an initial repurchase of $12 million of its NEXO Token on an open-market principle, with the decision coming into force with immediate effect.
Part of the company’s recently launched tokenomics overhaul Nexonomics, the move seeks to further boost the value of the NEXO Token, which marked a 160% price increase since the campaign’s launch in late October. The buyback program is yet another step to bolster the NEXO Token’s stability and growth potential, ultimately rewarding token holders for their investment and 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,” said Co-Founder and Managing Partner Antoni Trenchev. “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.”
Elaborating on the buyback’s role within Nexonomics, Trenchev continued: “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.”
NEXO Tokens repurchased within the program will be placed transparently on the blockchain in an Investor Protection Reserve (IPR) with an ERC-20 address 0x1C433CBF4777e1f0dCe0374d79aaa8ecDC76B497. Each buyback tranche will be vested for a minimum of 12 months after repurchase. Tokens locked into the IPR will not be eligible for dividends, making the program all the more beneficial to loyal NEXO Token holders during future dividend distributions.
Once vested, upon management discretion, buyback tranches may be re-locked or withdrawn to be used for interest and cashback payments, dividend distributions and/or liquidity provision on decentralized exchanges. Additional budgets may be allocated for future repurchases in accordance with company growth and market conditions.
Image enclosed: Minutes of Meeting, Nexo Board of Directors, December 1, 2020
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Nexo is the world's leading regulated financial institution for digital assets. The company’s mission is to maximize the value and utility of cryptocurrencies by offering tax-efficient ‘Instant Crypto Credit Lines’, high-yield ‘Earn Interest’ products, ‘Send & Pay’, and sophisticated trading and OTC capabilities, while providing top-tier custodial insurance and military-grade security of the Nexo Wallet. Nexo manages assets amounting to $2+ billion for over 1М users across 200+ jurisdictions, and has processed over $5 billion since its launch in 2018.
Official website: https://nexo.io