Nexo commits more funds to buyback initiative, NEXO token price takes off

The price of NEXO tokens has jumped to a daily high of $1.15 hours after Nexo announced that it will commit additional funds to its buyback initiative.

At press time, NEXO was trading at $1.06 up 5.40% in the past 24 hours. Its Fully Diluted Market Cap has also surged by 5.41% to $1,056,936,666.

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Nexo’s buyback initiative

Crypto lender Nexo yesterday announced that it was allocating an additional $50 million to its buyback program that has been running for months now. Using the additional funds, Nexo will continue to buy back its native token, NEXO, over the next six months.

The additional funds for the buyback program come after Nexo accumulated $100 million between November and May this year.

Nexo’s buyback program is geared to ensure the crypto lender avoids the troubles faced by other crypto firms in the current gruelling market conditions. Fellow crypto lender Celsius Network is currently facing turmoil and has even filed for bankruptcy while other industry heavyweights like Voyager Digital and Three Arrows Capital have suffered similar fates as the market continuously slumps.

Nexo co-founder and managing partner, Antoni Trenchev, in a press release said:

“In these challenging market conditions, the NEXO Token has moved consistently with the likes of BTC and ETH. 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.”

In a tweet on June 13, Nexo actually extended a formal offer to acquire qualifying assets of the Celsius Network after the crypto lender paused withdrawals at the onset of its financial crisis right after the Terra LUNA debacle.

After purchasing back its native token, Nexo intends to hold the tokens for a vesting period of twelve months. After the lapse of the vesting period, the tokens may be used for interest payouts or strategic investments through token mergers.