Amid crypto winter, Nexo commits additional $50M to buyback program

Crypto lending platform Nexo has elevated the dimensions of its buyback program, giving the corporate extra discretionary capacity to repurchase its native token to enhance curiosity funds or make strategic investments sooner or later.

On Tuesday, Nexo disclosed that its board of administrators had dedicated an additional $50 million to buybacks, constructing off the corporate’s preliminary $100 million repurchase program launched in November 2021. The approval inexperienced lights the discretionary repurchase of up to $50 million price of NEXO tokens on the open market.

NEXO is the platform’s native cryptocurrency, giving customers the flexibility to earn curiosity and lock in decrease charges for borrowing. The token presently has a market capitalization of $563.6 million and 24-hour buying and selling volumes of $46.7 million, in accordance to Nexo’s web site.

NEXO market cap chart. Source: CoinMarketCap.

The firm stated it elevated the dimensions of its repurchase program to show its “solid liquidity position” and willingness to put money into its neighborhood. The initiative will likely be carried out over six months, with all repurchased tokens topic to a 12-month vesting interval. Once the vesting interval is glad, the repurchased tokens could also be used to pay every day curiosity by way of NEXO tokens or make strategic investments “via token mergers,” the corporate stated.

Nexo has been eager to show its monetary power amid the bear market, going so far as in search of recommendation from Citigroup on how finest to purchase distressed crypto corporations. While the entire of the crypto business has been rocked by the implosion of the Terra ecosystem, centralized finance firms like Celsius, Voyager Digital and BlockFi have confronted the largest blowback.

Related: ‘Smear campaign’: Nexo responds to accusations of stealing donations, siphoning funds from charity

The cryptocurrency market stays in a precarious state with Bitcoin (BTC) exhibiting a robust correlation to conventional equities. Some analysts concern that this sturdy correlation may ignite one other selloff of digital belongings as conventional markets proceed to react to Federal Reserve jawboning.

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