Crypto Lender Nexo Allocates Additional $50M for Token Buyback Initiative

After purchasing its native tokens, Nexo will hold them in a vesting period for 12 months.

AccessTimeIconAug 30, 2022 at 2:00 p.m. UTC
Updated May 11, 2023 at 5:41 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Cryptocurrency lending platform Nexo has allocated an additional $50 million to its token buyback initiative, according to a press release.

The Switzerland-based lender will purchase $50 million worth of its native token over the next six months. This follows a previous buyback that saw it accumulate $100 million between November and May.

  • What Happens to the Spot Ether ETF if ETH Is Deemed a Security in Hong Kong?
    00:43
    What Happens to the Spot Ether ETF if ETH Is Deemed a Security in Hong Kong?
  • Hong Kong's 'Mind Boggling' Journey to Bitcoin and Ether ETFs
    19:29
    Hong Kong's 'Mind Boggling' Journey to Bitcoin and Ether ETFs
  • Are Bitcoin ETFs Driving BTC Demand? Bored Ape NFT Prices Down 90% From Peak
    02:05
    Are Bitcoin ETFs Driving BTC Demand? Bored Ape NFT Prices Down 90% From Peak
  • Is There a 'Significant' Correction on the Horizon?
    01:09
    Is There a 'Significant' Correction on the Horizon?
  • The Nexo token is currently trading at $0.982 with a market cap of $549 million, and has risen 4.35% over the past 24 hours.

    Nexo has thus far managed to avoid the troubles experienced by rivals due to the grueling market downturn this year. Fellow lender Celsius Network filed for bankruptcy after freezing withdrawals in June, while former industry heavyweights such as Voyager Digital and Three Arrows Capital have suffered similar fates alongside a severe slump in the price of crypto assets.

    “In these challenging market conditions, the NEXO Token has moved consistently with the likes of BTC and ETH," said Antoni Trenchev, Nexo co-founder and managing partner, in a press release. "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.”

    Once Nexo tokens are repurchased, they will be sent to the company's on-chain Investor Protection Reserve for a vesting period of 12 months, after which they might used for interest payouts on the platform or strategic investments via token mergers.

    Following the difficulties faced by Celsius, Nexo expressed interest in buying assets, including customer data, from its distressed rival.

    Note: This story was accidentally briefly published at 9:20 a.m. ET. Its intended publish time was 10:00 a.m. ET.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Oliver Knight

    Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about