On August 30, crypto exchange Nexo’s Board of Directors approved an additional $50 million for the company’s Token Buyback Program. The approval allows the top regulated digital asset institution to repurchase its native NEXO Token on the open market at its choice and on a regular basis. According to a statement from the firm, this would be the exchange’s second financial investment in repurchasing its tokens this year. The first time was in May, when the exchange allocated $100 million to repurchase its NEXO tokens.
Nexo Co-Founder and Managing Partner, Antoni Trenchev, stated:
“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, tokens, and community, alongside its outward-facing initiatives of injecting liquidity into the industry.”
The new $50 million buyback program will begin immediately and is expected to be completed in the next six months, depending on market conditions. The Investor Protection Reserve (IPR) of Nexo, which has been created using the ERC-20 address 0x1C433CBF4777e1f0dCe0374d79aaa8ecDC76B497, will house all repurchased tokens. As part of Nexo’s long-standing commitment to openness, the monthly entry of bought-back tokens to this address will be made known via the company’s website and other official means.
Each pair of tokens is subject to a 12-month lock-up period upon repurchase. In the event that the lock-up period has expired, repurchased tokens may be used for strategic investments via token mergers and daily interest payouts in NEXO Tokens in order to protect the interests of token holders.
To further strengthen the programme, earnings from NEXO Token pairs on the platform’s native exchange and NEXO Token-collateralized credit will be placed straight into the repurchase. As usual, the Nexo Board of Directors may set aside extra funds for upcoming buybacks in line with business expansion and market conditions.