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.
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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.