Nexo is one of the leading CeFi crypto lenders. And as of yesterday, they are starting on Buyback 2.0. They are repurchasing up to $100 million worth of their Nexo token.
By calling it 2.0, that implies there was a 1.0. And there was. Back in 2020, Nexo bought back $12 million of their token. This will be 8x that amount.
Their press release indicates they may buy back more later too.
How Buyback 2.0 Will Work
The buyback will start this week and go on periodically for the next 6 months. Nexo will go out into the open market and buy the tokens.
To be transparent and due to community requests, tokens purchased during this buyback will go to this ERC-20 contract address: 0x1C433CBF4777e1f0dCe0374d79aaa8ecDC76B497.
Another comfort for investors is Nexo is adding a vesting schedule. For 12 months after repurchase, the tokens must stay inactive. After that, they can use the token for:
- interest payouts
- or token mergers
Buyback to Improve Institutional Access
Nexo has a clear goal to get more institutions involved in crypto. And specifically lending. You can see where this goal comes to mind with moves like investments in:
- SEC-registered broker-dealer Texture Capital
- decentralized asset management protocol Qredo
- DeFi bond market protocol Yield
Nexonomics 3.0: Tokenomics Strategy
The company calls its tokenomics strategy Nexonomics 3.0. Nexonomics is the reason why they are doing the token buyback. Nexo hopes this buyback will:
- improve the Nexo token utility
- and boost its value.
If the first buyback results are any sign, Buyback 2.0 is likely to do both. The company’s first token buyback in October 2020 was successful for investors. $Nexo rose 2430% after the first buyback program, rising to a new high of over $4.
NEXO Price Information
As of the time of publication, NEXO’s price is $3.32 with a 24-hour trading volume of $10,426,065. The token is trading 1.1% higher over the last 24 hours. Per Coingecko, they have a circulating supply of 560 Million NEXO coins and a total supply of 1 Billion.
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