Liquidity and Nexonomics : $100 Million NEXO Buyback | Investor Protection, Vesting and Token Merger

2 min read

Nexo $100 Million Buyback Program

The board of directors at Nexo, the leading regulated institution in the digital assets industry, has formally approved a $100 million buyback program authorizing them to discretionally repurchase their native NEXO tokens periodically in the open market. The token buyback program will commence immediately and is expected, depending on prevailing market conditions, to conclude within six months after which the Nexo Board of Directors may determine a consecutive buyback.

The repurchased tokens will be invested in strategic targets via token mergers with applicable vesting schemes to protect token holder interests. As part of Nexo’s commitment to utmost transparency and customer trust, it will use part of the repurchased NEXO Tokens to make daily interest payouts to clients who choose to receive their yields in the NEXO Token. Since all tokens used for interest payouts on NEXO Tokens are sourced from the open market, they will not affect the supply of circulating tokens.

NEXO Tokens repurchased within the program will be placed on the blockchain in an Investor Protection Reserve (IPR) with an ERC-20 address 0x1C433CBF4777e1f0dCe0374d79aaa8ecDC76B497. After the repurchase, each buyback tranche will be vested for a minimum of 12 months. The tokens will only be eligible for token mergers, daily interest payments, and other developments following the expiration of this period. Nexo’s website and communication channels will periodically publish an overview of the transactions carried out under this buyback program as well as details of these transactions. 

“The buy-back program announced today reflects our strong financial position and underscores our ability to simultaneously upgrade our products, maintain a strong balance sheet, and invest in alternative growth strategies, all while providing significant utility and growth to NEXO Token holders. As Nexo’s market share increases and the industry matures, we’ll continue to seek acquisitions and token mergers to cement our leadership position in the crypto lending ecosystem,” commented Antoni Trenchev, Co-Founder and Managing Partner at Nexo.

Nexonomics 3.0 for Ease of Institutional Access

This buyback marks Nexo’s second token repurchase initiative, following the successful completion of a $12 million program earlier this year. Additional budgets may be allocated for future buybacks in accordance with company growth and market conditions. As a supplementary stimulus for the program, revenues from the trading activity using NEXO Token pairs on the Nexo Exchange, or loans collateralized by Nexo’s native token will be reinvested directly into the buyback.

This latest buyback is aligned with Nexo’s plan to further enhance the liquidity of the NEXO Token and increase its value. The program also complements Nexo’s push to ease institutional access to the cryptocurrency ecosystem through investments in reliable blockchain infrastructure, as manifested by its recent stake acquisition in FINRA member and SEC-registered broker-dealer Texture Capital, decentralized technology provider Qredo, and DeFi enterprise Yield.

The buyback program is the linchpin of Nexonomics 3.0, the third phase of Nexo’s ongoing tokenomics initiative designed to upgrade the NEXO Token’s utility and bolster its value. Tokenomics have played a critical role in attracting a huge number of new members to Nexo’s ecosystem. In response to the first Nexonomics initiative, the NEXO Token rose in value by 2430%, to an all-time high of $4 in May 2021. The successive Nexonomics 2.0 rollout inaugurated the first NEXO Governance Vote wherein token holders indicated their preference for daily payouts of up to 12% APY on NEXO Tokens. Since then, the company has returned over $87 million to token holders in daily interest on NEXO and Earn in NEXO payouts.

Nexo, which now manages $15 billion in assets, has achieved numerous milestones across the board – it secured the industry’s first real-time audit via Armanino and developed a sophisticated prime brokerage product. Since the launch of the previous buyback in late 2020, the lender has continued to benefit from higher digital asset prices and strong demand for its tax-efficient cryptocurrency-backed credit lines and exchange services.

About Nexo

Nexo is one of the world’s leading regulated digital assets institutions. The company’s mission is to maximize the value and utility of cryptocurrencies by offering tax-efficient Instant Crypto Credit Lines™, a high-yield Earn Crypto Interest suite, an instant Exchange service, and sophisticated trading and OTC capabilities, while providing the top-tier custodial insurance and military-grade security of the Nexo Wallet. Nexo has processed $50+ billion for 2,500,000+ users across more than 200 jurisdictions.

Originally published here


Chris Munch

Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.

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