Crypto lender Nexo has grown the size of its buyback program by committing an additional $50M to buyback its native token NEXO via the open market, according to a Tuesday press release.
“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, token, and community, alongside its outward-facing initiatives of injecting liquidity into the industry,” said the company’s co-founder Antoni Trenchev.
Nexo’s Board of Directors plans to use the funds over the next six months to purchase the token. The Switzerland-based lender initiated the buyback program back in November 2021 and has since acquired $100 million worth of tokens between the launch month and May.
“In these challenging market conditions, the NEXO Token has moved consistently with the likes of BTC and ETH, demonstrating that, proportionally, demand for our native asset remains strong.” added Trenchev.
“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 rollercoaster.”
Once the planned buyback is complete, the repurchased tokens will stay locked for a vesting period of 12 months, post which they might be used to pay interest to the customers or carry out strategic investments through token mergers.
On August 17, Nexo filed a lawsuit against its former director for breach of a settlement agreement amid speculations that the company is looking to buy distressed assets from its rivals struggling to meet expenses during the bear market.
Following the news, NEXO went up about 15% before shedding some of the gains and currently trades at $1.08, according to Coinmarketcap data.