The Bitcoin lender has asked Citigroup for guidance on how to buy struggling crypto companies during the downturn market.
The cryptocurrency lending platform Nexo has expanded its buyback program, giving it more leeway to repurchase its native token, raise interest rates, or make future strategic investments.
Building on the first $100 million share repurchase program the business began in November 2021, Nexo disclosed on Tuesday that its board of directors had pledged an additional $50 million to buybacks. The clearance gives the go-ahead for the arbitrary repurchase of NEXO tokens up to $50 million on the open market.
The platform’s native cryptocurrency, NEXO, enables users to earn interest and secure lower borrowing rates. According to Nexo’s website, the token has a market capital base of $563.6 million and a 24-hour trading volume of $46.7 million.
Nexo Commits To Invest Further Amidst Crypto Winter:
The business said it expanded its repurchase program to show off its “strong liquidity position” and commitment to giving back to the neighborhood. The project will take over six months, with a 12-month vesting time for all repurchased tokens. The repurchased tokens may be used to pay daily interest using NEXO tokens after the vesting time has been satisfied or to make strategic investments “through token mergers,” according to the statement from the business.
Amid the bear market, bitcoin lender has been eager to show its ability to manage its finances, even going so far as to consult Citigroup on the best way to acquire struggling cryptocurrency businesses. The collapse of the Terra ecosystem has shaken the cryptocurrency industry as a whole. Still, centralized financial firms like Celsius, Voyager Digital, and BlockFi have taken the brunt of the criticism.